Romania's DN Agrar Group 9-mo net profit surges 111% y/y
Croatia's industrial sales up 1.2% y/y in Sept
Croatia's GDP grows by 2.8% y/y in Q3 - first estimate
N. Macedonia's industrial producer prices fall 3.9% y/y in Oct
Slovenia's Krka among top pharma firms in S&P corporate sustainability ranking
Nov 15, 2007 17:07 EEST
November 15 (SeeNews) - Bulgaria's largest lead and zinc smelter KCM expects to close the year with a net profit of over 60 million to 70 million levs ($45 million to $52.5 million/30.8 million to 35.9 million euro) backed by a forecast revenue of 700 million levs, a senior company official said.
“We expect our financial results to be better than last year’s as the net profit is seen above 60-70 million levs,” Nikola Dobrev, chief executive officer of KCM 2000 holding company, which incorporates the smelter, told SeeNews in a recent interview. "Sales are seen at 700 million levs."
The smelter posted a net profit of 68 million levs and had net sales of 525.2 million levs last year.
It has the capacity to produce 75,000 tonnes of zinc and 60,000 tonnes of lead annually. Last year, it produced 69,777 tonnes of zinc and 64,691 tonnes of lead.
“We expect an almost identical zinc and lead output volume as we are operating at full capacity,” Dobrev said. "The question now is to become more competitive."
BECOMING MORE COMPETITIVE
To back its plans, the company launched earlier this year a 150 million euro programme, which includes three main projects aimed at boosting the smelter’s zinc and lead capacities, as well as expanding its precious metals production unit. The company plans to build a zinc and lead smelting units at its existing production units located near Bulgaria’s second largest city of Plovdiv, in southern Bulgaria.
“Zinc capacity will be increased by 25-30%, while the plan for the lead capacity, having in mind the limited resources, is to raise it by no more than 10-15%,” Dobrev saaid without providing further details.
The programme is focused on a radical change in the technologies employed in zinc and lead production in compliance with the requirements of the 21st century, he added. The new technologies will be more energy efficient and more flexible in regard to resources.
“In both big projects [for zinc and lead capacities] we would target to increase [the share of] recycling in the overall production, which would mean that no less than 30% of the production of both types of metals will come from recycling secondary raw materials and byproducts,” Dobrev said.
The company's investment programme, to be funded by own funds and bank loans, targets to outline a vision how the company will position itself in 15 years. It is scheduled to be completed by 2011 but the group will try to finish it ahead of schedule, Dobrev said.
Earlier this month the company opened a 3.0 million euro recycling facility for used batteries which is also part of the investment plan. The facility has a capacity to process three tonnes of used batteries per hour.
The group completed a 10-year project worth 105 million levs in 2005, aligning its existing capacities to the environmental standards of the European Union, which Bulgaria joined in January.
KCM 2000 is active in a broad range of services, ranging from retail to utilities. Last year, KCM 2000 together with local construction firm Sienit started building an industrial zone close to the smelter’s production facility, some 20 kilometres southeast of Plovdiv.
The investment in the industrial facility will exceed 70 million levs and will envisage another 12 million euro to pe spent on infrastructure, Dobrev said. The industrial zone is expected to be completed by 2010-2011.
(1 euro = 1.95583 Bulgarian levs)
You have run out of free articles this month.
Sign up in for
and get ten (10) free articles per month or sign up for
and get unlimited access.
Browse our free newsletter options