"We kept our promise to stabilize the financial standing of the company and make sure all its obligations are met without delay. In order to accomplish this, we have already transferred roughly 60 million EUR," said Rafal Sosna, Investment Director of Penta.
Furthermore, Penta injected additional capital to finance the most vital capital investments. Thus, by the end of this year, Drumet will launch a brand new production line for thick ropes, broadening its current product portfolio with the most value-added assortment.
"We are encouraged by the positive and warm welcome of the ‘new Drumet' by its customers. Most of them decided to place their first orders. Nevertheless, the company will have to put in much more effort to return to its previous order book," Rafal Sosna added.
The company will also expand within its distribution channels and will offer additional services, especially on the domestic market. Drumet is also about to purchase two foreign steel ropes distributors.
The main actions taken by Penta and the top management:
- Immediate effort to re-launch production and fill the order book.
- Strong focus on processed, value-added products, mainly ropes.
- While the production was still on hold, Penta secured the payment of salaries in July and August to all employees.
- Agreement with trade unions to reduce the workforce by 20%, roughly 200 workers.
- Additional cost-saving efforts have been launched in the area of production material supply, energy supply and external services.
- Establishing transparent and best-practice corporate government rules and procedures.
- Established in 1895 and based in Wloclawek, Drumet is one of the oldest steel wire producers in Poland and Europe.
- In 2007, the company produced 120,000 tons of steel wire products and generated revenues of approximately 424 million PLN.
- The company suspended its production activities in February 2009 due to an inability to service its liabilities to its suppliers and creditors.
- In January 2009, the company filed for bankruptcy protection, based on which the Economic Court in Wloclawek announced the bankruptcy liquidation and appointed an Official Court Receiver.
- On the 15th of July 2009, Penta Investments effectively became the owner of Drumet's enterprise (i.e. operating assets and employees), with a transaction value of 120 million PLN.
- Drumet currently provides in excess of 700 jobs.