Polimex to cut costs more than planned - CEO in paper

WARSAW Thu Jan 3, 2013 3:02am EST

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WARSAW Jan 3 (Reuters) - Polish builder Polimex is targeting larger-than-planned cost cuts and will have its debt on track by the end of June, its chief executive was quoted as saying on Thursday.

Last month, Polimex clinched a debt restructuring deal with creditors and bondholders under which state industrial agency ARP will buy up to a third of the builder.

Polimex has said it would sell non-core assets worth at least 600 million zlotys ($195 million) and cut operating costs at least 300 million by the end of 2015.

CEO Robert Oppenheim told the daily Parkiet that the builder has already signed deals to sell assets worth 221 million zlotys, adding cost cuts will be significantly larger than previously envisaged.

Polimex, a leading construction group that is also involved in major state energy contracts, ran into trouble last year after a road-building bonanza left many builders saddled with loss-making contracts and huge debts. ($1 = 3.0745 zlotys) (Reporting by Adrian Krajewski; Editing by Dan Lalor)

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