The Management Board of KGHM Polska Miedź S.A. announces that, given the situation on the financial markets and the deteriorating environment surrounding the Company, including the significant decreases in copper prices, it has decided to undertake temporary actions aimed at a rapid decrease in costs and an increase in productivity.
Consequently, it has today been decided to realise a program to achieve savings and increase productivity, which will bring significant effects within a short period of time throughout the Company.
Simultaneously, work on projects to integrate the mines has been halted, as well as on organisational changes respecting metallurgy, which assumed the achievement of measurable effects over a time frame of two to four years. Nonetheless, all elements of the above projects which could possibly bring about rapid economic effects, shall be continued.
In addition, previously-begun programs aimed at reducing costs and increasing productivity in various operating areas of the Company and Group are being continued. One of these is the centralisation of purchasing throughout the Group, which it is cautiously expected will bring about savings in 2009 on the order of at least PLN 200 million.
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