News and Articles related to Town of Kaolinovo
Current date: 2010-02-09 07:06

Bulgarian mining co Kaolin continues to diversify revenue sources

Revenues at Kaolin, the biggest producer of industrial minerals in South-east Europe, should rise at least 20% in 2008, Konstantin Nenov, chairman of the supervisory board of the company, said at a meeting with reporters and investors on Tuesday. The management made no further forecasts about the financial performance of the company in 2008.

In 2006 and 2007, Kaolin posted consolidated income growth of 28% and 30%, respectively, while coping with significant exposure to currency and resource price fluctuations. Consolidated income was reported at 117.6 mln levs in 2007, up from 90.2 mln levs a year earlier. Consolidated net profit doubled to 18.7 mln levs. Revenue sourced from the company`s Romanian operations doubled in 2007.

The Ukraine now accounts for 2.6% of Kaolin`s market exposure after the consolidation in the second half of 2007 of that country`s second biggest silica sand producer PKSP.

The Kaolin management said it will press on with its active program for organic growth and geographic expansion in 2008. The company plans to continue to diversify revenue streams, to offer new products for the bathroom fixtures industry and to enrich its product mix for the construction industry.

Brick production will be developed on the strength of the recent acquisition of two factories in Serbia. In 2007, Kaolin bought production assets in Serbia, the Ukraine and Albania and a commercial corporation in Turkey. It is also owns assets in Romania.

The company will stick to its plans to reduce exposure to fuel and shipping price fluctuations.

Part of the measures in that respect are the deployment of natural gas grids at the production sites in Kaolinovo, Vetovo and Senovo, the adoption of an energy management system and the investments in more efficient transportation vehicles. Investment in environmental project will be among the key tasks for Kaolin in 2008.

Subsidiary company Solar Pro is currently developing a project for a photo-voltaic farm in Silistra.