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BBT: The production plan
Bach Tuyet Cotton Corporation (COBOVINA) has informed of its current operation as follows:
On October 22nd 2008, the BOD was unanimous the revival plan of operation with mobilized capital of VND65 billion. The plan will be implemented in 3 stages:
1. Stage 1 (3 months): doing procedures to mobilize capital of VND65 billion
The company mobilizes capital from following sources:
* Suppliers: advance materials
* Strengthening to collect bad debts
* Make loans from banks (if possible)
Operation in this stage is still lost due to high expenses
2. Stage 2 (3 months): recovering 100% of productivity of producing medical cotton, investing machines, paying debts.
The stage will reduce loss due to decrease of interest expenses and depreciation of machines.
3. Stage 3 (3 months): Completing investment on machines -> double production of medical cotton -> increase of sales -> reach break-even point in the last month.
As soon as the BOD has passed the re-operation plan, the Management Board has quickly implemented it timely. The first stage has been done partly with negotiating with suppliers to advance materials for production.
* On November 21st 2008, the company official re-operated with 60 employees and recovered 50% of production capacity.
* Once the stage 2 is deployed and mobilizing capital is done, the company can reach 100% of productivity.
* When the stage 3 is implemented with completion of investment on machines, the productivity could reach up to 200%.
HOSE
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