In 2007 the management of Holding Asenova Krepost AD-Asenovgrad will continue to implement the company’s investment program, which envisages investments of 3.5 mln leva aimed at improving the quality of its production, introducing new technologies and products, increasing the capacity and lower production costs, Asenova Krepost’s report, published by BSE, shows.

In 2007 the management of Holding Asenova Krepost AD will concentrate its efforts on lowering operating costs, restructuring the production and replacing the low efficient production equipment with high productive installations.

In 2006 Holding Asenova Krepost posted operating revenue of 38.17 mln leva down 3.744 mln (8.9%) from 2005. The company ended 2006 at a loss of 3.75 mln leva compared with a profit of 13 000 leva the previous year.

The main reasons for the registered sales drop include the smaller domestic market, higher competition, unfair import, modified production structure, and raw materials supply problems.

In order to overcome the negative trends Holding Asenova Krepost AD’s management has focused its efforts in a number of directions: improvement of the financial discipline with a view of receivables collectibility; improvement of the raw materials supply; lowering production costs; increasing the share of high quality packages, as well as changing the product structure of production.

In 2006 Holding Asenova Krepost AD signed contracts and bought equipment worth 497,781 leva. The company also purchased a cast and stretch film production installation valued at 1.2 mln euro.

In the field of scientific research Holding Asenova Krepost AD will continue to work on assimilating new production capacities for multi-layer wide foil used in agriculture, expanding the flexprint base and the bags and packages confectioning with modern design, as well as adoption of the technology for “regeneration” of technological waste.