Spanish Azkar Plans 120 Mln Euro Capacity Investment by 2005

Spanish transport and packaging company Transportes Azkar (Azkar) plans to invest 120 mln euro ($138.43 mln) by 2005 to expand its capacity, it was reported on May 13, 2003.

The project will be presented for approval to the board of directors of the company in July 2003. The plan includes acquisition of land plots and construction of warehousing platforms. The investments will be also used for buying and applying of ultimate equipment and technologies in the transport and logistics area. The first step of the plan is the construction of a 12,000 sq m logistics platform in Zaragoza, northeastern Spain, for 11.4 mln euro ($13.15 mln). The company has also bought 75,000 sq m land plots in Zaragoza, on which it will build another logistics platform, the president of Azkar, Luis Fernandez Somoza, said. The company also plans to expand abroad and the contract it signed in April 2003 with German transport company Rhenus is already bringing fruits, Somoza added. Azkar aims at signing contracts with transport and logistics companies from central Europe. The president of Azkar also forecast a 9.0 pct rise in 2003 earnings before interest, tax, depreciation and amortisation (EBITDA) and a 10 pct year-on-year increase in 2003 turnover. The turnover of the company for 2002 reached 253.7 mln euro ($292.67 mln), up 9.3 pct year-on-year, while net profit fell by 20.5 pct to 16.24 mln euro ($18.73 mln). Azkar will pay a gross dividend per share of 0.12 euro ($0.138) for 2002 full-year results in June 2003.

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Source: Cinco Dias