Zaklady Magnezytowe ROPCZYCE S.A.
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ZM Ropczyce liquidate the company China, form a company in the USA
release time :2020-05-21 10:36:09 page view:233

May 20, 2020 - Zakłady Magnezytowe Ropczyce (ZM Ropczyce) decided to liquidate the subsidiary Haicheng Ropczyce Refractory Materials Co. Ltd. (WFOE) in China and the commencement of work related to the preparation for the establishment of a 100% subsidiary in the United States of America, the company said.

The mission of the US subsidiary will be to develop commercial and marketing activities in the field of refractory products manufactured by ZM Ropczyce on North American markets, according to the press release.

"After preparing the business plan and necessary formal and legal documents, the company may be registered in the second quarter of 2020. The company's initial capital will be paid from the issuer's own funds, and its level will result from the investment business plan, "we read further.

The intention to create a subsidiary in the USA is associated with the implemented development strategy, which is an important element of the geographical diversification of sales and the development of export markets. It is assumed that the investment will create the basis for further development of sales on foreign markets, mainly on North American markets.

The liquidated Chinese subsidiary WFOE did not conduct business activity and was not subject to consolidation in the financial statements of the capital group ZM Ropczyce.

"The commencement of the liquidation process of WFOE is a premise for increasing to 100% the write-off for impairment of shares held in this company, which will affect the financial result of the issuer and the capital group in the second quarter of 2020. This is due to the historical circumstances of this investment and does not affect the current financial liquidity of the issuer "- indicated in the communiqué.

The estimated value of the write-down to be included in the financial statements of ZM Ropczyce as at the date of the decision to liquidate the company is approximately PLN 1.8 million.

"The decision to liquidate the issuer's subsidiary in China is dictated by dynamic changes in global conditions in economy," we read further.

Zakłady Magnezytowe Ropczyce is a producer of refractory ceramic materials used as structural elements of furnaces and thermal devices operating at high temperatures. The company's offer is addressed mainly to the steel industry, the non-ferrous metal industry, the cement and lime industry, metallurgy of glass, foundry, coke and to other industries using high temperature processes. The company has been listed on the WSE since 1997. Its consolidated revenues amounted to PLN 329.19 million in 2019.

Zaklady Magnezytowe ROPCZYCE S.A.

Address: ul Przemyslowa 1-Ropczyce Postal Code: 39-100 Website:

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