Gniewczyna Wagon Factory increases its business capital

Gniewczyna Wagon Factory announced that it has raised its business capital by 38,6 M PLN to the present value of 55 M PLN.

Increasing its business capital is an element of total financial restructuring by which the company wishes to strengthen its financial stability and its market position.

Buying out the minority shares of private foreign investors and terminating their influence on the company was an important step in the restructuring process.

The present owner of majority share of 97,44% in Gniewczyna Wagon Factory is a foreign investor - BRIBON ENTERPRISES LTD.

Mister Ľuboš Áč, the President of the Supervisory Board of Gniewczyna Wagon Factory took part In a common meeting of Supervisory Board, board members and trade unions’ leaders on 12th May 2008. He said there: ”The company and its staff confirmed its dynamic development and its attractiveness as early as 2007. The task of unchanged company authorities is to take advantage of favorable market situation to maximally use the factory possibilities and to finish development programs. A strategic objective of the company is to enter effective partnership relations in order to ensure long-term operation of the company on the European market.”

In 2007 Gniewczyna Wagon Factory achieved 96,1 M PLN profit from sales and net profit of 5,9 M PLN. The number of employees in 2007 increased by 29,5%, and salary expenditure increased by 67%. Sales income for the first quarter of 2008 were 37,7 M PLN and made up for 39,2% of total sales income for 2007. Net profit of 3,3 M PLN from the first quarter of 2008 makes up for 55,6% of last year’s profit. The above comparisons suggest the shape of yearly production and sales increase.

Gniewczyna Wagon Factory (Polish name: Fabryka Wagonów Gniewczyna, S.A.) based in Gniewczyna in Podkarpackie province produces cargo railway wagons, parts for them and large welded constructions. The factory performs repairs and modernizes wagons for Polish and international railway transit companies.