Slovenia’s Impol aims to acquire Croatian aluminium producer TLM in 2016

By bne IntelliNews March 9, 2016

The acquisition of Croatian aluminium maker TLM is one of the main goals of Slovenian aluminium producer Impol, Impol director Jernej Coki told Slovenian Press Agency (STA) in an interview published on March 8. Impol also plans to enter the car industry and to almost double revenue within the next ten years to €1bn.

Croatian news agency Hina reported on February 18 that Impol plans to lease production facilities at Sibenik-based TLM from March 9 which is seen as a first step towards the acquisition of the bankrupt Croatian aluminium producer. TLM has been facing financial difficulties for several years. In mid-2015 Russian businessman Igor Shamis took over the company, after which production stopped due to the lack of raw materials, and workers stopped being paid.

According to Coki, Impol’s focus this year is the acquisition of the bankruptcy estate of TLM, on which Impol has been working for a year and expects to close the deal in the coming weeks.

"There was a lot of work but we've finally found ways to carry it out. In all likelihood we will lease the assets during the course of the bankruptcy proceedings and launch production. If all goes according to plan, everything will be arranged this week," he said.

Coki told STA that Impol decided to acquire TLM because it was rare that a company goes bankrupt just as another company needs precisely those production capabilities - in TLM's case a fairly new rolling mill.

"In Slovenska Bistrica we will soon close a 55-year old unproductive hot rolling mill, which is a dwarf compared to the one in Sibenik. The Sibenik mill is ten years old and a new one costs €80mn. As a result, Impol will get inputs that it now has to purchase on the market while freeing up capacity at its headquarters in Slovenska Bistrica for the flagship extrusion programme," he said.

In the initial phase Impol plans to hire 280 of the almost 500 TLM workers have who lost their jobs.

"Afterwards we will increase output and headcount as we regain the market that TLM has lost," Coki said.

Coki believes that consequently, Impol will have the opportunity in the next five years to increase revenues to €1bn, which will help the company to achieve its end goal - entering the automotive industry.

Impol recorded an 11% y/y growth in revenues in 2015 amounting to €545mn, management company Impol 2000 announced in its unaudited results published on February 16. It recorded €25mn in pre-tax profit at the group level last year. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) amounted to €48mn in 2015, which is 14% above plan.

Impol is one of the biggest Slovenian exporters with over 1,800 employees.

Related Articles

European Commission recommends removing Croatia from excessive deficit procedure

The European Commission (EC) recommended that the European Council remove Croatia from the excessive deficit procedure (EDP) in its European Semester Spring Package published on May ... more

RBI doubles net profit y/y in Q1 as Russian business recovers

Raiffeisen Bank International (RBI), the second largest bank operating across Central and Eastern Europe by assets, reported that net profit almost doubled year-on-year to €220mn in the first ... more

Croatian Agrokor says largest subsidiaries owe at least €5.4bn

Total liabilities of struggling Croatian retailer Agrokor Group’s 19 largest subsidiaries, including Agrokor itself as well as Konzum, Tisak, Frikom and Ledo, amounted to HRK40.4bn (€5.44bn) as ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss