Paloma seeks strategic partner

- Slovenian manufacturer of paper goods Paloma from Sladki Vrh is seeking a strategic investor, which would provide an "injection" of capital worth about 20 million euros - said Kreso Savric, the Chairman of the company's Supervisory Board.

- Current majority owner - state-owned company PDP, is not able to increase the value of Paloma's capital and it is willing to support a financial injection if the partner who is ready to take over more than 50% of shares is found - Savric said at the meeting of shareholders.

- If the operation succeeds, the company plans to make a profit of 11 million euros and 110 million euros worth of income prior to 2015 - said Savric.

Paloma's Executive Director Bojan Rajtmajer was optimistic and he indicated that the strategic partnership might be made already in February 2011.

- If that fails to happen, Paloma will keep operating on the edge of profitability, dependent on the prices of raw materials and energy - he said.

During the first six months of this year, the Slovenian company reported 390,000 euros worth of losses, with the sales higher by only 1%, instead of projected 5%.

Rajtmajer blamed that on the prices of cellulose, as well as on tough competition with the manufacturer of paper goods from east and central Europe.