Glass-maker Slovglass Poltár filed for bankruptcy in Banská Bystrica District Court on July 1 by, with long-term losses to blame, the TASR newswire was told on July 2.
Slovglass's shareholders held intensive negotiations with several investors, mainly within the glass industry, but these ended in failure, leaving no other option but to declare bankruptcy, reads a Slovglass statement. The company has suffered in recent years due to its long-term orientation towards the U.S. market, with receipts from exports making up 90 percent of the company's revenues. The steadily-weakening dollar has led to huge losses.
Slovglass attempted to divert exports to Europe, but the strengthening of the Slovak crown by 20 percent against the euro and by almost 30 percent against the British pound within a short period disrupted the company's plans.
Another significant factor was a considerable increase in energy costs, while raw materials for the production of leaded and sodium-potassium glass also rose significantly in price. The company says that despite the bankruptcy it will try to keep the most promising production elements alive. According to the Employment Office in Lučenec, if Slovglass, which employs 900 people, sheds employees on a large scale, unemployment in Poltár district, which already stands at 15 percent, will rise by several percentage points. TASR
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
3. Jul 2008 at 7:00