Wood processors are doing fine
Slovakia’s second-largest wood processor, PRP Lučenec, made a net profit of €0.8m last year, and its sales soared 44% to €48.5m. Last spring, Proxy Finance (Peter Vajda) became a temporary financial investor in the company. It helped sort out financial problems stemming from a massive €20m investment into doubling production capacity. The investment resulted in a €1.6m loss in 2015-16.
Shortly before his death last year, Vajda also joined as co-investor in the project of turning around the production of synthetic fibers in Senica, led by Czech company Kordárna. He also acquired a small stake in the Banská Bystrica metallurgy firm Gevorkyan.
The largest Slovak wood processor, Rettenmeier Tatra Timber, owned by the German Cordes family, improved its net profit 151% last year to €2.7m, and its sales rose 9% to €74.9m. The high profits of wood processors stem from low wood prices.