Promens stands strong in midst of global financial turmoil

27.10.2008

The World economy continues to be shaken by the by turmoil that is sweeping through financial markets across the globe. Although the financial turmoil has hit Iceland more than other neighbouring countries not all Icelandic companies are affected and Promens therefore wants to emphasise the following:

• Roughly 98% of Promens’ business is outside Iceland, primarily in Europe.
• Promens has a diversified product portfolio and the company works through three divisions: Packaging, Components and Rotomoulding. Promens is operating 60 plants in 20 countries, mainly in Europe.
• The company’s financing is mainly through the Scandinavian banks DnB NOR and Nordea, and Promens does not need to refinance its loans until 2012.
• The current development on the financial markets, especially the collapse of the three main banks in Iceland, has no direct effect on the day to day business of Promens.
• Promens main shareholder Atorka Group hf. has requested that its shares trading on OMX Nordic Exchange in Iceland will be suspended from trading. Atorka‘s Board of Directors believes that due to unusual market situations, the conditions for operating a Stock Exchange in Iceland are hardly in place and the foundation for normal share price formation in Atorka is disrupted. Atorka’s board of directors will look into listing the company again when the market conditions change.
  
• Promens business continues to be strong. Promens, as other companies operating in Europe and N-America, is facing volume decline from key customers, and is responding to that by cutting down cost and improving the efficiency in the group. Promens continues to offer its customers superior service and is growing its business.