SOFIA (Bulgaria), March 31 (SeeNews) - Bulgarian cellulose producer Svilosa sees its 2008 group pre-tax profit 92.4% higher at 4.5 million levs ($3.6 million/2.3 million euro) and gross sales are seen rising 103% to 101.7 million levs, the company said on Monday.
Svilosa provided no forecast on the expected net profit this year. Its net profit totalled 2.1 million levs in 2007, the company said in a statement.
It expects gross pulp production sales to rise to 97.7 million levs this year from 41.7 million levs in 2007.
The company, which is Bulgaria's sole producer of sulphate bleached hardwood pulp, exports 93% of its output, mainly to European Union member states.
The main task for the group this year will be to wrap up a 55 million euro upgrade and capacity increase project at its subsidiary Svilocell, it said. Last year, Svilosa raised its share capital 4.8 times to some 31.8 million levs to partly finance the project which calls for tripling Svilocell's output capacity to 150,000 tonnes of pulp a year.
In 2008, Svilosa also plans to complete a 2.6 million euro investment in a wastewater treatment plant and a project for the installation of an anti-pressure steam turbine with a power generating capacity of 10 megawatthours worth close to 2.0 million euro.
In the longer term, the group will invest some 250 million euro in building a paper mill with an annual capacity of 500,000 tonnes. The preliminary feasibility study and an action plan on the project are to be carried out in early 2008. The project is expected to be completed by the end of 2010.
The company also plans to upgrade and expand its port in the town of Svishtov, on the Danube river, where it is based. The expansion plan calls for four berthing places, enlargement of the storage area, and construction of a roll-on/roll-off (ro-ro) terminal. Currently the company is in talks with the state to buy additional 4.6 hectares of land near the port.
Shares in Svilosa ended 4.9% lower at 5.1 levs at last trading on Friday in a volume of six shares on the Bulgarian Stock exchange.
(1 euro = 1.95583 Bulgarian levs)
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