Boromir Prod Buzau, part of the bakery group Boromir based in Ramnicu Valcea, is after a 19.5m RON (4.6m euros) loan from ING Bank NV through the bank’s Bucharest branch, according to a report the company’s representatives sent to the Bucharest Stock Exchange.
"We have not contracted any other banking loans this year and we do not plan to secure other loans by yearend, either," said Constantin Boromiz, shareholder and general manager of the Boromir group. Boromiz says the group has several long and short-term loans from previous years, but he would not disclose their value.
The loan will be discussed by Boromir Prod’s shareholders on September 21, with the mortgaging of two properties owned in Buzau and Slobozia to be tackled as well. The shareholder did not explain how the company will use the loan.
In Q1, Boromir Prod Buzau saw turnover drop 30% from the year-ago period. In the same period, the group’s business remained at the 2008 level, although bakery producers have been in recent years among the companies boasting the biggest growth rates in the food industry.
"We are on schedule and the market is beginning to look better. In August we expect the same turnover we generated in August 2008," Boromiz says. He maintains he has not resorted to restructuring or layoffs this year. Instead, he added ten new products to the company’s portfolio and broadened another ten ranges. "The launch of new products can help the company a lot since it offsets the decline posted by other product categories," explains Boromiz.
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