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Group's strategy | For investors

The basis of the production of the Group is formed by the four Polish Barlinek floorboard lines, located in Barlinek, in the Western Pomerania province. Their combined production capacity amounts to over 6 mln m². The first foreign establishment of Barlinek, with capacity exceeding 2 mln m², is situated at Winnica in Ukraine. The Company effectively plummets its development strategy in the countries of Central Eastern Europe. In the second quarter of 2008 building of the factory in Russia commenced. Development has also been decided for the recently taken over ompany in Romania.

Investment in Barlinek

In the years 2002-2007 the Group invested over 450 mln PLN in modernising production establishment in Barlinek. During this time the Company renovated the log sorter, renovated the deciduous and coniferous sawmill and built an enormous drying complex. The old Barlinek floorboard production line was fundamentally modernised and two new lines were built. All three lines combined produce annually 6 mln m³. The majority of the investment mentions is connected with the main business of the Company – wooden floors. Apart from flooring Barlinek produces natural veneers and pellets – modern biofuel. After finishing the last investment, the pelleting lines produced a combined 85 000 tonnes annually. In 2007 the Group took the decision further diversification of production and commenced investment in the production of wooden skirting boards. The production capacity skirting board factory in Barlinek amounts to 6 mln linear metres.

Ukraine was the first

Already in 2005 the Company had decided further development beyond the frontiers of Poland and purchased land for future investment in Ukraine. In 2006 the decision was taken to build a new establishment producing Barlinek floorboards in Winnica. In the first building stage the deciduous sawmill with frieze milling plant were inaugurated with a production capacity of 60 thousand m³ annually. In the second stage of the investment, the floor plank production line, drier of a distribution centre and also the boiler house and a production establishment were build. Pellets are ecological fuel, produced from sawdust. The wooden floor factory was built and inaugurated according to the plan in the autumn of 2007. Shortly afterwards the decision was taken to build a production plant for semifinished coniferous wood products and the purchase and modernisation of a sawmill in the locality of Kosiv, for which there is a target production capacity of 100 thousand m³ of wood annually. The factory of Barlinek Invest in Winnicy is considered to be the greatest and most modern undertaking performed in this sector not only in Ukraine but also in Europe. Production capacity of the plant amounts to 2 mln m² of flooring annually, increases the production of Barlinek floor planks from 6 to 8 mln m² per year. Employment in the enterprises of the Company in Ukraine amounts to 850 persons.

Ukraine is not all

In January 2008 the Barlinek investment has been finalised, consisting of taking up 99. 9% of the shares of Diana Forest with registered office in Bacau, in Romania - a producer of floor planks. Currently the production capacity of the Romanian plant amounts to approximately 700 thousand m².