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Finsa’s profits rise but high costs loom

This article is from page 12 of the 2007-10-30 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 12 JPG

EAST Clare firm, Finsa Forest Prod- ucts more than quadrupled its profits last year, but is facing large costs to meet new environmental require- ments at its plant.

According to accounts returned to the Companies Office, the Span- ish-owned firm recorded a profit of €601,000 last year, increasing from a €141,000 profit in 2005. The size of the company’s business increased from €35.8 million in 2005 to €39.6 million last year.

The cost of sales also increased

from €31 million to €34 million, while the company’s retained profit now stands at €4.1 million.

The principal activity of the com- pany is the sale of timber. A geo- graphical breakdown shows _ that sales of €27 million in Ireland and €12 million in the EU.

Underlining the importance of the company to the east Clare economy, the accounts show that 156 people were employed at the firm with a wage bill last year of €5.9 million.

According to the documents, “turn- over has increased considerably in 2006 to €39 million as against €35

million in 2005 due primarily to in- creases in prices during the year.

‘Margins available continue to be very tight due to supply constraints and rising fuel and electricity costs. Other factors impacting on margins are the increased cost of staff, re- CSmUNLOeatoselmrcDeOMbe-DDODeSloomeEm

“The main challenge facing the company in the immediate future will be to improve current margins.”

In relation to the company’s envi- ronmental obligations, the company is currently using an old chimney that needs to be replaced with one fitted with suitable filters to limit

emissions to levels specified in the operating licence.

The company 1s currently consid- ering a number of options identified and has submitted a preliminary re- port to the EPA.

“The technology involved is com- plex, specialised and evolving, and as aresult the company will continue to consider its options in conjunction with the Environmental Protection Agency (EPA).

“Planning permission needs to be obtained for the construction of the new generator and chimney,’ the documents confirm.

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