July 7 (SeeNews) - Romanian salt producer Salrom said on Friday it targets a 30% higher gross profit in 2017 and a 10% rise in turnover, based on projects for technical upgrades and improved management of resources.
Salrom expects a gross profit of 39.2 million lei ($9.7 million/ 8.5 million euro) in 2017 and a turnover of 325.7 million lei, the company said in a press release.
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"We are aware of the major role our company has not only in the Romanian economy but also in the region and we are motivated by the expectations of our shareholders, customers and suppliers to implement plans for modernization and development as soon as possible," Salrom's general manager, Dumitru Matei, said.
In the medium term, Salrom will implement modern extraction techniques within its branches, which will ensure high productivity as well as higher degree of protection of mining equipment. Also, the refurbishment process started in the previous years will be continued so that old equipment will be replaced.
Salrom's gross profit surged 90% on the year in 2016, reaching 30.1 million lei, while turnover fell 1.5% to 297.1 million lei due to a drop in salt sales on foreign markets. However, this drop was partially offset by a rise in domestic sales and tourism revenues.
Turnover from tourism increased by 19% in 2016 compared to the previous year, mainly due to a rise in the number of visitors to Salrom's salt mines. In total, some 1.5 million tourists visited Salrom's mines in 2016.
Salt production decreased slightly to 2.1 million tonnes, while limestone production rose to 1.1 million tonnes in 2016.
The company invested 16.7 million lei last year, mostly in new production equipment.
Salrom, Romania's sole edible salt producer, was founded in 1997 by reorganizing the former Regia Autonoma a Sarii Bucuresti in seven branches in the country: Ramnicu Valcea, Slanic, Ocna Dej, Ocna Mureș, Targu Ocna, Praid and Cacica. Its main products are rock salt solution, recrystallized salt and limestone.
The government, through the economy ministry, owns 51% of Salrom and 49% is controlled by property investment fund Fondul Proprietatea.
(1 euro=4.5870 lei)