Annual Report for 2006
Introduction by the Chairman of the Board
Dear Shareholders and Business Partners,
AL INVEST Břidličná, a.s., a production and trading company, approved its position of the only Czech producer of rolled semi-finished products of aluminium and the biggest domestic producer of flexible packing materials in 2006.
It was not easy to achieve the given targets in 2006 because the market conditions experienced significant changes regarding both inputs and outputs of the company.
We can say that a transformation of several processes was started, including an organizational structure and restructuring of technological flows with the aim of provision of profitable production portfolio.
This is a long-term process requiring flexible and transparent management system supported by continuous technical innovations.
In 2006 several new investments were activated with the aim of enhancing productivity and profitability of production as well as investments which require changes in market conditions as new technologies of flexible packing materials.
The production portfolio was redefined with respect to the strategic orientation of the rolling-mill and the production of marginal groups of products was finished.
Medium-term production and business strategy was set until 2013 and it will be specified in connection with development of market conditions and ability of internal reproduction of the company.
The priority for the production and trading activity was a successful management of the reconstruction of our key technological equipment of rolling lines. With respect to the increased demand for rolled semi-finished products we managed to settle this difficult task and satisfy our customers. Managed technology standardisation and extraordinary enhancement of production of our new product for production of soldered exchangers confirms the trend of the long-term orientation of the rolling-mill on products with higher added value. Historically most successful year was the last period for the TAPA Tábor production division, the biggest Czech producer of flexible packing materials using the flexoprinting technology. The company actively responded to substitution tendencies in the tobacco industry segment by a decision on development and implementation of a completely new technology – vacuum metallization – which provides a space for development of new products with the aim of enhancing the product portfolio.
Last year was still a period in which the company had to face up to the pressure of external environment. The price of the basic input raw material, primary aluminium, reached its historical maximum during the year and, therefore permanent pressure on trading margin was started. The results of the business activity, which are realized within the export orders for the EU and Eastern Europe markets of almost 60 %, were significantly devaluated by permanent growth of the exchange rate of Czech crown in comparison with Euro. The cost area of production was still loaded by significant increase of gas and electricity prices.
In spite of the above stated facts and technical interruptions caused by new investments and planned repairs we managed to execute all our existing contracts.
With active assistance provided by shareholders and especially financing banks the company financing was completely restructured and, therefore its financial stability was provided.
All groundwork for provision of targets set for 2007 has been created.
I would like to express my thanks to our shareholders, business partners, including financing banks, and especially to the employees of our company for their co-operation in 2006.
Ing. Petr Otava, CSc.
Chairman of the Board