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Barlinek puts off its investment plans in Russia until next spring

Last week Barlinek, one of the world's biggest manufacturers of wooden floors, informed that due to the Management's estimation of an acceptable investment risks, the company would not be going ahead with the construction of the new plywood manufacturing facility in Russia costing some 400 million PLN.

Recently the company has been closely monitoring economic situation in Russia, which led them to re-evaluate available reports and analyses. Based on the results of these analyses, it has been determined that the investment risks are unacceptably high. The company's Management Board is convinced that the observed symptoms of a slowdown in the Russian economy are of temporary nature and as soon as the external conditions do not present extraordinary risk for the construction and operation of the facility, the company will resume its project.

- Our decision to put the investment on hold is based strictly on economic factors. We have not encountered any difficulties during the investment project - says Mariusz Gromek, Chairman of the company's Supervisory Council. - Quite to the contrary, local Russian authorities have been very helpful and kind.

Barlinek believe that the present fluctuations on the financial market are short-term in nature, and that Russia will remain a very attractive area for investment. The company believes that the presence of the Russian market will bring some very specific benefits. Central and Eastern Europe is a natural growth area for Barlinek. After the completion of a successful investment in the Ukraine, Russia is the next attractive market. In the town of Czerepowiec the company acquired more than 30 ha of land where ground work has already begun. This is why the company will continue to monitor the macroeconomic environment with special focus on the construction segment. All company activity in Russia will be resumed as soon as the risk of failing to reach the target economic parameters is minimised.