26 November 1998: After having been purchased by German-based Vetrotex, which is owned by France-based glassworks Saint-Gobain, Vertex has decided to end ties with more than half of its foreign retail…
26 November 1998: After having been purchased by German-based Vetrotex, which is owned by France-based glassworks Saint-Gobain, Vertex has decided to end ties with more than half of its foreign retail agents. According to a recent press report, the company will lose Kcs 50 million in costs associated with closing the retail network, according to the company“s chairman. The closures were deemed necessary because Vertex would otherwise compete with its owner in certain regions. The chairman added that Vertex will be still selling its goods to the countries where the closures will be made, the report said, in some cases directly and in some cases through Vetrotex. Vertex expected profits of about Kcs 350 million this year, but after the costs associated with the cuts that figure will be less than Kcs 300 million, the chairman said. Vertex planned about Kcs 3 billion in sales this year, but the Russian crisis and a strong currency have decreased sales somewhat and now it expects to see considerably less than that figure. Vetrotex acquired a 90% stake in Vertex in April from Komercni Banka. It took control of the company in October after the European anti-monopoly commission approved the merger.