PFR invests in H. Cegielski Poznań

PFR invests in H. Cegielski Poznań

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The Polish Development Fund invests PLN 40 million in the implementation of the company’s new development strategy enabling it to enter new promising business segments and to launch innovative products, such as the electric engine presented at the Hannover Messe. The investment will also make the company more attractive to potential strategic business partners.

“With the equity investment of the Polish Development Fund in Cegielski, we open a new chapter in the company’s history of more than 170 years. I do believe that the Poznań-based company will, in the near term, write new chapters by generating added value for the Polish economy in the broadly understood industry of the future,” said Mateusz Morawiecki, Deputy Prime Minister and Minister of Economic Development and Finance. “Six months ago, in Poznań, I said that well designed and properly implemented restructuring and investment projects could restore hope in a better future for companies like Cegielski. The family silver of the Polish economy has been sold out or liquidated in the last 27 years. We want those companies which have specialised staff, determination and potential to have a chance not just of survival but a second life and growth,” said the Deputy Prime Minister.

The Polish Development Fund will invest PLN 40 million in H.CEGIELSKI-POZNAŃ S.A. convertible bonds. The investment is a good match for PFR’s strategy to invest in promising industrial companies focused on development through innovative projects.

“Our investment will help HCP develop new products and attract strategic partners. The company’s new strategy opens attractive opportunities of development such as production of electric car engines. The implementation of Cegielski’s strategy for 2017-2021 and supplementary projects proposed by PFR should grow the company’s revenue and restore its long-term profitability within years,” said Paweł Borys, President of the Polish Development Fund.

PFR’s investment will allow the management of H.CEGIELSKI-POZNAŃ S.A. to implement the goals of the investment plan and prepare its production infrastructure for new products such as state-of-the-art electric engines and products for the energy sector.

“Cegielski’s potential includes more than its unique production infrastructure and long-time experience. It relies mainly on state-of-the-art technology and products, as well as innovative solutions for many sectors. The vision of restoring Cegielski’s glory is more than a plan, it is reality. Just like before, Cegielski will set the pace for global peers. We are starting mass production of the world’s best electric drive with a five-phase induction motor. It will find applications in the transport sector. In partnership with URSUS S.A., we will design and start the mass production of a special vehicle driven by our engine. We are developing a line of products and services for the renewable energy sector including convertors for wind turbines and gearboxes. We have experience in all these sectors. Innovation will drive the company’s competitiveness and development in areas of strategic importance to the Polish economy,” said Wojciech Więcławek, President of H.CEGIELSKI-POZNAŃ S.A.

The plan developed by Cegielski’s management aims to restore the company’s long-term profitability and put it on track of development in the coming years.

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