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KGHM seeks new suppliers

2008-08-12
The Polish copper company KGHM is introducing new tendering regulations. The company hopes to save as much as several million PLN a year on opening to the supplier market.
REKLAMA

In coming years KGHM plans to spend up to several billion PLN on investments and renovation work, and already today is seeking partners for the projects. In order to ensure that the best suppliers are chosen, KGHM will change its tender rules. This is to help rebuild confidence in the company and increase its partner pool. In July, in a bid to streamline tendering procedures, KGHM opened an online Central Enterpriser Register in which interested suppliers can leave their entries. Those that do can count on tender invitations in future. The register will also allow KGHM a better overview of potential partners and will help cut down red tape during tenders.

Until now KGHM’s mines and other subsidiaries ordered their materials and services separately, which did not allow them to benefit from the scale effect. This is why the KGHM management also founded a Central Procurement Bureau, which in the near future will take over all purchases by KGHM and its various branches. The Bureau will also be responsible for organising auctions whose principle will be that the cheapest bidder wins. Auctions will differ from tenders in that they will enable immediate response to rivaling bids, and as a result reductions of initial prices.
The first tenders and auctions under the new rules will take place before the end of the year.
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KGHM Polska Miedź S.A. (KGHM Polish Copper Combine)
The company is mainly a producer of copper and silver, of which it annually supplies respectively 530,000 and 1,200 tons placing in the world lead in both fields. KGHM extracts most of its copper from a 468-square-kilometre bed, the biggest in Europe and one of the biggest in the world.

KGHM Polska Miedź S.A. consists of a Central Management Office and ten branches operating in diverse sectors of the economy (among others telecommunications, trade, manufacturing, transport, R&D, sport, tourism and insurance). KGHM also holds direct and indirect shares in 39 enterprises. At the close of 2007 KGHM employed 18,258 people.

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