Croatian Nexe gets control of port

Croatian Nexe gets control of port
Published: 31 December 2004

Croatian construction materials group Nexe said this week that it has gained control of a port on the Drava river and planned to build a concrete plant there.  The group said in a statement it raised its stake in Luka Tranzit to 55.54 per cent from 36.28 per cent by buying equity from other shareholders but gave no details for the price of the deal.  Luka Tranzit is located in the eastern town of Osijek on the river Drava just before it joins the Danube.

Privately-owned Nexe group, former Nasicecement, said it would shortly start preparing documents to start building the concrete plant in Osijek. But it added it would also work to expand the main activities of Luka Tranzit, which include handling of cargo and passengers.

Nexe said it expected its 2004 net profit to jump by 56 per cent to 135.3 million kuna (US$24m) on the back of lower costs and new products.  Nexe’s total revenue this year is expected to reach 1.12 billion kuna, up by 28 per cent from the previous year, the group said in a statement.

It said the main reason for the rise in sales was the launch of new products such as new types of tiles and better segmentation of clients, which pumped up profits. Next year the group expects a 21 per cent rise in total revenue and a 27 per cent increase in net profit compared to 2004. Nexe said it would shortly look into new ways of financing its investment projects including the issuing of corporate bonds.

Nexe includes 20 companies in Croatia, Bosnia and Herzegovina and Serbia and Montenegro, which produce cement, bricks, tiles, concrete and lime. The group, with a staff of 2880, is also active in construction and agriculture.