Jablonex changes focus, drops unprofitable lines

Czech glass and jewelry enterprise Jablonex Group will concentrate on growth in the automotive and electrical engineering sectors with the aim of becoming a world leader in specialist glass in 10 year…

Czech glass and jewelry enterprise Jablonex Group will concentrate on growth in the automotive and electrical engineering sectors with the aim of becoming a world leader in specialist glass in 10 years, Jablonex Marketing Director Pavel Kopacek told the press on 13 October 2005. Board member Zdenka Truhlarova said the group wanted to focus on higher added value products and leave unprofitable segments, citing Christmas decorations as an example of one of the lines that Jablonex Group has dropped. The restructuring announcement follows the merger of five glass and jewelry makers from North Bohemia on 1 October 2005: Ornela, Jablonex, Bizuterie Ceska Minco, Zeleznobrodske sklo, and Bohemian Jewelry. Truhlarova said the firm would focus on glass for the automotive and electrical engineering industries with the aim of using the group“s productive capacities in the best possible way and cutting costs. Five new divisions have come into being through the restructuring: Sklo (glass), Kovo (metal), Bizuterie (jewelry), Ceska Minco (coins), and Finance a sprava (Finance and Administration). Bizuterie is now the key division, generating 70% of overall sales. Bijouterie Trading Company (BTC), a firm owned by 20 individuals, holds 73% of the Jablonex Group. Austria“s Swarovski group has another 2%, and the rest is held by small shareholders. The Jablonex Group has share capital of CZK 53 million and employs 3,500 workers. In 2005, the group, which will operate under a new logo registered in 54 countries worldwide, expects sales of CZK 3 billion. The firm generates 95% of its sales revenues from exports, in particular to the US, the UK, France, Germany, and Japan. In addition to selling its own products, the Jablonex group also markets the output of about 190 Czech and Slovak glass makers, who buy materials from Jablonex.