22 January 2010 12:04 [Source: ICIS news]
PRAGUE (ICIS news)--Spolchemie has stabilised its financial condition following the implementation of a recovery plan and a steady improvement in business since the middle of last year, the Czech producer of synthetic resins said on Friday.
“Problems remain but the worst is certainly behind us,” said Spolchemie in a press release.
The situation with creditors could now be described as stable, the company said.
Spolchemie was last year forced to turn all its assets over to banks as collateral against its debts and lay off one-fifth of its 900-strong workforce.
“The next major challenge is to deal with the current drastic raw material cost increases,” said Paul Yianni, director of resins at Spolchemie.
“We have announced a €150/tonne ($211/tonne) price increase on epoxy resins, which will be implemented in full.
“Margins are already at record lows and we cannot absorb any more cost increases. I anticipate further increases as margins remain at unsustainable levels,” he said.
Spolchemie produces epoxy, alkyd and other synthetic resins.
($1 = €0.71)
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