New shareholders restructure CCCF and plan profit in one year

Newsroom 02/09/2008 | 15:34

The new shareholders, which bought into the company earlier this year though a capital increase, have stationed Adrian Costin at the helm CCCF's administration board, with the task to restructure the company. Last year, CCCF posted EUR 125 million in turnover, but was on loss. The new owners hope to reach breakeven point in up to one year.
Wagma Holdings is planning to increase its participation in CCCF to full ownership within one year, from the current 64.06 percent it holds.
The remainder of the shares belong to the association of the company's employees. CCCF currently employees 3,000 people, but expects to reach up to 4,000 staff by the end of next year.
The majority shareholder plans to allot EUR 15 million to buying new equipment by the end of 2009.
The company's restructuring strategy consists of giving up some non-profitable activities, such as brick production in Giurgiu, where it will close down a factory, signing more infrastructure deals and expanding on the construction materials segment.
“We will restructure the entire activity of CCCF Bucuresti, which is suffering due to its structure. We will bring the entire activity under CCCF Bucuresti's umbrella into a single entity,” said Costin.
Selling some of the company's real estate assets will also be part of its strategy to cover the existing debt, which is around EUR 90 million. The firm plans to recover around EUR 50 million in the next six months, which will cover some of the debt, and hopes to cover the rest in a year.
The group hopes to develop the production of construction materials either through greenfield investments or through acquisitions.
Wagma Holdings Ltd took over the controlling share package earlier this year through a capital increase of some EUR 13.7 million. The company is controlled by Horia Simu, one of the shareholders in local copper producer Cuprom.
Corina Saceanu

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