Monbat, the Bulgarian manufacturer of car batteries, said it has earmarked 64.2 mln levs to increase the production capacity and the competitiveness of its Montana and Dobrich plants and to complete the facilities for the recycling of spent batteries in Serbia and Romania as it aims for a spot in the top 3 in the European car batteries business.

Annual starter batteries output is projected to reach 3.1 mln by July 2009, up from 1.2 mln in 2006.

Production of telecommunication and stationary batteries should double to 200,000 by the end of 2008.

The company also plans to set up a new division for the manufacture of torque batteries for industrial powered trucks. It should reach an annual output capacity of 250,000 elements in 2009 and 750,000 in 2011.

Over 61% of the investment resource will be committed in 2008 and another 25 mln levs in 2009. Up to 16 mln levs of the necessary funding will be borrowed from banks. The remaining 48.2 mln levs will come from company funds, lease financing and possible a debt issuance.

'No capital raise is planned for this and next year for the purposes of investment spending with a possible exception in case we buy a rival company in South-eastern Europe or a company with a business similar to ours,' said Atanas Bobokov, chairman of the Monbat managing board.

In early 2008, Monbat said it was on the lookout for acquisition opportunities in the region that would boost output capacity.

Monbat consolidated net profit doubled to 16.88 mln levs in 2007 and is seen at over 31 mln levs in 2008.

Bobokov said the distribution of 20% of the unconsolidated result as dividend is still on the table and could be put to a vote at the upcoming general meeting of shareholders

Source: http://news.dnevnik.bg/