Further business growth and the expansion of production

In the period from January to June 2015 Steklarna Hrastnik continued its business growth. In the first half of this year, sales revenue amounted to EUR 28.9 million which is 14 per cent more than in the same period last year.

Operating profit before interest, taxes, and amortisation (EBITDA) amounted to EUR 6.5 million, which is 19 per cent more than in the same period last year.Net profit for the first half of the year increased by 30 per cent and amounted to EUR 4.2 million compared to the previous year.

Increased production capacity of luxury bottles which was achieved after the completion of the investment last year and further expansion of the range of products with higher added value, resulted in 3 per cent increase in the average sales price per kilogram of glass compared to last year, and contributed to the good business results of Steklarna Hrastnik.  The trend of increasing value added per employee, which is 10 per cent higher compared to 2014, continued in the future.

In 2015 Steklarna Hrastnik continues with investment in strengthening the production of luxury, special bottles and table programme with higher added value. Therefore, in the context of this year's investment, the company will purchase a new decorative machine and completely renovate the decorative area within the unit of glass tableware, invest in a new machine for the production of miniature and perfume bottles and automatic control line, also within the unit of glass tableware. This will increase the production in the unit of glass tableware by one-third to a total of 80 to 90 tonnes of glass per day. In the next year the company will move of the machines for the production of special bottles in the unit of glass tableware. This will enable Steklarna Hrastnik to introduce in the unit of glass tableware the production of products with higher added value and consequently impact on increasing the profitability of the production. The purchases of a more powerful machine which will increase the production capacity in the unit of packaging glass from the present 138 tonnes of glass per day to an additional 25 tonnes of glass per day is envisaged. The additional capacity in this unit will be used only after obtaining modified environmental permits. Andrej Bozič, Director-General of Steklarna Hrastnik, presented the reasons for investment in production which will in 2015 amount to EUR 7 million, and further internationalisation of the business: "The changes increase technical equipment, capacity, flexibility, and profitability of our production, since the production in Slovenia is directed towards the production of products with high added value of higher quality. The production segment, in which we are no longer competitive, will be moved, together with the machines, to a country where lower production costs will be achieved. This will enable us to additionally improve our offer for the existing customers and acquire new ones."  

Steklarna Hrastnik therefore continues with business growth, expansion of production capacity of products with high added value, by entering new markets and consequently by employing new employees. Since 2010 Steklarna Hrastnik hired 208 new employees in all areas. By the end of the year the company plans to employ at least 15 new employees. Also in the next year we will continue with the employment in respect of retirement and increased capacity of production with higher added value.

600450 Further business growth and the expansion of production glassonweb.com
Date: 20 July 2015
Source: www.steklarna-hrastnik.si

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