Business News

Maribor Foundry Improves Business Results on High Demand

Maribor, 27 April (STA) - The Mariborska livarna Maribor (MLM) foundry recorded EUR 72m in turnover in 2010, up EUR 12m from 2009, the company has said. However, despite the increase in turnover, the company generated a EUR 2.7m loss.

Still, the MLM managementremains optimistic, arguing that orders are coming in so fast that it had to start turning them down, saying no to some EUR 50m in deals since November.

The improvements were recorded due to higher demand for the company's automotive programme, where the production increased nearly by half.

MLM boss Branko Zerdoner has told the STA that the company, which employs around 1,000 workers, expects positive development in all segments of production in 2011. Revenues are expected to go up some 20% to reach EUR 84m. Zerdoner also hopes that MLM will end the year in the black.

In 2011, the company is planning some demanding investments. "MLM needs to double its production capacities by 2014, therefore we must build an additional plant," said Zerdoner.

The construction project is estimated at EUR 19m and the company has requested a EUR 13m loan. Zerdoner expects a consortium of four or five banks to step in shortly.

The new plant is expected to increase the automotive department revenues from EUR 36m annually to EUR 60m.

In 2010, MLM moved a part of its production to Bosnia-Herzegovina. Its pressure casting facility in Bugojno employs 48 people.

"The decision proved to be a good one. We now have a plant in a country with somewhat lower labour cost, while development, construction, tools and complicated products are produced in Slovenia," Zerdoner said.

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