Description of activity

TRANS-MASZ S.A. operates in the broadly defined road market. In Poland approx. 500 companies are engaged in the road industry. The Company conducts two types of business activity: renovation and maintenance of roads and manufacture of machines for road works. Owing to the large amount of financing for road infrastructure under public aid, the market of road works has the opportunity to develop over the next few years, as a large number of works requires more and more road machines. There are several major manufacturers of road machines on the Polish market.
The Company was the first and is now the leading Polish manufacturer of sprinklers, emulsions and scattering machines. The machines are manufactured in small lots. For many years TRANS-MASZ S.A. has been providing year-long road maintenance and renovation services. It specializes in the emulsion and grit technologies, including renovation of asphalt pavements, partial renovations and dirt road renovations. The Company also offers road maintenance in the winter period.
Thanks to the price and quality of its machines, the Company competes with leading European manufacturers from Germany, Czech Republic and France. In Poland, TRANS-MASZ S.A. is the only manufacturer of a machine for renovation of asphalt pavements.
Road renovations are performed by the Company using, among others, machines of its own manufacture, which allows the Company to successively improve their quality. The consumers of the road works are most often administrators of national, provincial and district roads, including among others the Polish railways Polskie Linie Kolejowe. Many Polish road companies use machines manufactured by TRANS-MASZ S.A. For many years the Company has been selling its machines to the eastern markets, including to Turkey, Iraq, Belarus, Lithuania, and Latvia. In order to win new markets and to be able to more fully ensure satisfaction of customer expectations, recently contracts were signed with sales representatives in Russia, Bulgaria, Romania and Ukraine. The Company’s strategic goal for the next few years is to attract an investor and change the Company’s capital structure, while retaining, at the same time, the conducted core activity. The Company assumes a systematic growth of activity and profitability by: strengthening its leading position in the market of construction of road machines for maintenance works, commencement of construction of other machines utilizing the emulsion and grit technologies (including the slurry-seal paver) in order to be able to offer a full range of machines using this technology, strengthening its local position in the market of summer and winter maintenance works, expansion of the market of road works to forest and railway areas, commencement of road renovation and construction works, commencement of additional trade activities using the Company’s existing potential and expertise.