8 July 1999: The Oroshaza-based blown glass factory Elso Magyar Csomagolouveg (EMCS) Kft in Hungary increased its registered capital in two stages by Ft 6.2 billion in order to improve its liquidity a…
8 July 1999: The Oroshaza-based blown glass factory Elso Magyar Csomagolouveg (EMCS) Kft in Hungary increased its registered capital in two stages by Ft 6.2 billion in order to improve its liquidity and to finance future developments. Owens Illinois, the American owner of the factory, increased EMCS“s Ft 7.4 billion registered capital to Ft 10.8 billion in May and to Ft 13.6 billion in June. Last year, EMCS spent Ft 2.8 billion on expanding its production capacity and modernizing its packaging technologies. Technical director Ferenc Gorbics says the company earlier projected to sell 500 million glasses this year, but changed this number to 300 million in its business plan due to the diminished demand. The lowered demand was attributable to the collapse of the Russian market, which had absorbed two thirds of EMCS“s sales before. As a consequence of the Russian crisis, EMCS was forced to close down its Sajoszentpeter-based factory early in 1999, in which it had already invested Ft 2 billion during 1998. The next “liquidity-maintaining“ step was introduced in June 1999 when EMCS laid off 30% of the staff at its Oroshaza-based factory, where it also shut down one of the furnaces. Gorbics said EMCS would buy new furnaces and production lines this year.