Expansion through investment in domestic and foreign glass operations is planned by Sklarny Kavalier of the Czech Republic, the company“s financial director Jaroslav Krajc has said.
Last year, Sklar…
Expansion through investment in domestic and foreign glass operations is planned by Sklarny Kavalier of the Czech Republic, the company“s financial director Jaroslav Krajc has said. Last year, Sklarny set up Kavalier FGH in Rapotin, north Moravia, and in January 1997 it won a tender for a 26% stake in a Ukrainian plant in Poltava, involved in the production of glass for medical supplies. Household and laboratory glassware made in the private FGH plant should complement Sklarny“s production. “Moreover, the plant used to sell 95% of its output through our mediation,” Krajc explained. The plant“s annual turnover has been around Kc 15 million, which Sklarny intends to raise several times. The Poltava plant is a state-owned joint-stock company whose shares are tradable on the Ukrainian stock exchange. Part of its shares are in the hands of employees. Ukraine has a shortage of glass for medical supplies and has to import it. Glass for medical supplies is a traditional product of Sklarny. “We want to invest in Ukraine and develop production at lower cost there,” Krajc said. The Poltava plant has an equivalent of Kc 120 million in turnover, which Sklarny intends to more than double over the coming years. Preliminary figures for 1996 show that Sklarny had a Kc 1.7 billion turnover last year, up Kc 100 million against 1995. The expected pre-tax profit is Kc 140 million, although the figure would be up to Kc 225 million if it were not for some additional costs and higher than planned reserves. 76% of turnover was from exports. “The dynamic of Sklarny Kavalier“s development has slowed down as a consequence of tough competition and unfavourable development of the exchange rate of the Deutschmark, our chief export currency, against the Czech crown,” Krajc said. The average workforce was 2,179 people. Wages grew 11.6%, although the productivity of labour rose only 8.1%. The biggest owners at the end of last year were Skloexport, with 23.4%, and PIAS, with 21.4%. Investicni Fond Komercni Banky had 15.2%, SIS 11.3% and Bohemia Cristal and KIS 5.5% each.