Amica negotiating for large contract

2010-07-28

Amica, a Polish producer of electronic equipment, has been negotiating with a European manufacturer on the subject of a large contract which pertains to the production of kitchen stoves, according to a report in Parkiet. Unofficial reports suggest that Amica would produce tens of thousands of stoves every year. If the negotiations succeed, the Polish producer will have to invest up to PLN 20m (€5m) to increase its production capacity.
Despite the fact that the household electronic equipment market is declining in Poland, Amica succeeded in increasing its sales by around 1.9% between January and May 2010. During the same period, there was an 18% reduction in sales on the overall market in Poland.
However, during the first quarter of 2010, the producer made a net loss of PLN 4m (€1m), because of the cost involved in the sale of two Amica factories to Samsung. Amica expects the costs associated with the separation of the two plants from their respective organisations to be reflected in the company’s annual results.