C.T.O: Reorganization of activities
14/12/2010 12:39
In order to fully inform the shareholders and the investing public in general the Board of Directors of C.T.O Public Company Ltd would like to inform you on the reorganization of the Company’s activities.
Nature of change
Until recently, the Company was actively involved in the production and trading of paper goods. Following an examination of its activities, the Board of Directors decided to terminate the production of paper and to assign it to third persons.
In this context, the Company assigned the paper production to ORIENTAL PAPER MFG based in Syria and reached an agreement with the Cypriot company A.N. Constantinou Trading Ltd.
The Company’s activities currently focus on the sale and distribution of paper goods to existing and new customers. The Company receives the orders and assigns their production to companies that produce paper goods. It also distributes the goods to its customers.
Business reasons
The business reasons for this decision have to do with the fact that the production of paper goods was not profitable, since the cost was exceptionally high. The Company turned to another method of activities, which is expected to reduce the cost by 12%. This is a step towards the improvement of its financial results.
Business Plan
The Company aims to reduce the production cost and to increase its profits. Therefore, it decided to reorganize its activities.
Impacts
The Company’s anticipated results are the drop in its cost and the increase in its profit.
Nature of change
Until recently, the Company was actively involved in the production and trading of paper goods. Following an examination of its activities, the Board of Directors decided to terminate the production of paper and to assign it to third persons.
In this context, the Company assigned the paper production to ORIENTAL PAPER MFG based in Syria and reached an agreement with the Cypriot company A.N. Constantinou Trading Ltd.
The Company’s activities currently focus on the sale and distribution of paper goods to existing and new customers. The Company receives the orders and assigns their production to companies that produce paper goods. It also distributes the goods to its customers.
Business reasons
The business reasons for this decision have to do with the fact that the production of paper goods was not profitable, since the cost was exceptionally high. The Company turned to another method of activities, which is expected to reduce the cost by 12%. This is a step towards the improvement of its financial results.
Business Plan
The Company aims to reduce the production cost and to increase its profits. Therefore, it decided to reorganize its activities.
Impacts
The Company’s anticipated results are the drop in its cost and the increase in its profit.
