LUG S.A. is opening to a new continent

LUG S.A. has a new subsidiary. In recent days the capital structure of the Issuer was expanded with the LUG do Brazil Ltda company seated in São Paulo. Thanks to this company the manufacturer plans to build a strong position for LUG brand in Brazil and then in the whole South America region.

In double-quick time

In less than six months since the positive resolution of the Supervisory Board regarding the expansion to a new continent, LUG S.A. on 28.06.2012 concluded successfully the difficult process of registering of a new entity in Brazil. The seat of the LUG do Brazil - Artigos de Iluminação Ltda. company, short LUG do Brazil Ltda., is located in one of the world’s biggest metropolises and the business center of the country – in São Paulo.

- „I was very happy to hear the information about conclusion of the registration process. The average time needed to register a business in Brazil exceeds 6 months and in maximum it is even one year. Thanks to hard work and thorough preparation of the entire project team we were able to conclude the whole procedure in the shortest possible time. Thanks to that we will now be able to focus on achieving business goals.” – says Ryszard Wtorkowski, Chairman of the Executive Board LUG S.A.

The owner at the helm

LUG S.A. possess 65 percent of shares in the Brazilian company. The remaining shareholders are private: Eryk Wtorkowski, member of the LUG S.A. Supervisory Board, who took 20 percent of shares and Andrzej Barski, Polish businessman with many years of experience on the Brazilian market, who acquired 15 percent of shares. The overall share capital of LUG do Brazil Ltda. amounts to 150.000 Brazilian real and the Executive Board of the company is composed of Andrzej Barski as the chairman and Eryk Wtorkowski as the Member of the Executive Board.

- „Our new subsidiary will not only hire the local specialists who know the reality in such culturally and economically different country as Brazil, but also will be managed on site, since the whole Executive Board permanently resides in São Paulo. Poland will only provide the know-how and technical experience which we built up within 20 years of our existence” – explains Ryszard Wtorkowski.

LUG S.A., having engaged itself in supervising and implementing the strategy of development of its own subsidiaries, will also perform these functions regarding the company in Brazil, thus setting its expansion’s direction and business aims to achieve.

Brazil – a gate to the whole South America

The key factor contributing to making the decision about establishing a subsidiary company in one of the most important economically and investment-wise countries in the world were the brave development goals of LUG S.A. Capital Group supported by thorough analysis of Brazil’s economic perspectives. The operational flexibility and dynamics of the project team’s activities, as well as business potential of LUG’s luminaires in the continent of South America also played a huge part. In the first stage of LUG do Brazil Ltda.’s functioning it will handle the distribution of LUG brand products in Brazil and further to the whole South America.

- „In my opinion, the establishing of a new subsidiary company will significantly affect the development of LUG S.A. Capital Group and will allow to introduce the LUG brand on the markets of Brazil and other South American countries, thus increasing the sales volume. We expect first results in second half of 2012, however we will have to work a bit longer for achieve spectacular levels of income and profit. If everything goes as planned, Brazil will become or pass to other areas of the continent.” – says Ryszard Wtorkowski.