In the 1970s the Krakowskie Zaklady Armatur (Kraków Fittings Works) was a major manufacturer of fittings on the domestic market, delivering 90 % of the entire amount of those products. The level of production, employment and value of assets ranked the Kraków factory among the 500 largest companies in Poland. The economic crisis of the 1980s, however, had a great influence on the company’s health. Troubles with material deliveries and employment as well as obsolete means of production reduced production potential.

When the Polish market opened up in the early 1990s, the first mainly Italian competitors appeared, whose products attracted customers with their interesting designs and attractive prices.

The products which Armatura had to offer began to lose to the competition. The inability to adapt costs to lower incomes led the Company into a serious crisis. The Kraków factory had to cope with a large debt in that period, also with an absence of finance to continue operational activity and a large superfluous employment.



Crucial decisions

Transforming the erstwhile Armatura into a joint stock company and selling its control packet of shares by the Treasury in 1999 led to a resolving of the company’s major headaches. PZU Życie S.A., the strategic investor, acquired the predominant holding in the capital which substantially consolidated the Company’s capital assets.

The restructuring performed in 2000-2001 reduced employment by half. The company again became liquid and by 2004 accounted for around 30 % of total market deliveries of sanitary fittings. But when the construction of a new factory commenced the Company saw its finances again overtaxed. Armatura’s previous excellence was revived only when restructuring was undertaken at the turn of 2004.

The Company achieved a very high sales rate and a real improvement in financial performance in the wake of changes introduced in sales management and expanding the scope of offered products to include new models of mixer taps. Armatura continued to be a leader on the sanitary fittings domestic market and began to consolidate its market standing. Customers’ interest in the products delivered by Armatura Kraków S.A. grew also due to marketing campaigns promoting the implementation of 100-year warranty on mixer-taps cast elements.

Armatura Kraków S.A. production is focused in the Modern Kraków-based plant since 2006. On 31st July 2007 Armatura made a debut on the Warsaw Stock Exchange.



The strength behind Armatura

The Armatura Group today consists of three units. As the leader Armatura Kraków S.A. accounts for around 40 % of the domestic fittings market in the quantitative sense. The company specialises in producing and distribution of mixer taps. In 2009 it delivered a wide range of ball valves to the market. The second company in the group is Armatoora S.A. which was established to take over the estate of the bankrupt Toora Poland S.A. It produces aluminium heaters and other aluminium castings for the power industry. In 2008 the company planned to take over around 30 % of the market of such products in Poland. On the other hand, Armatoora S.A. and partner Sp.k. act as a financial centre, whose task is to use non-operative assets, search for and implement growth investments and also to optimise supply conditions.

Basing on its almost 87 years experience on the domestic market, Armatura Group has elaborated an effective business model linking its own manufacturing potential with national and foreign cooperation. The result is stability of the financial situation and resistance to fluctuations of the most significant external factors. Within its pursued strategy, Armatura Group consistently expands its scope of offered products consolidating its position on the three market segments. In addition, new sales markets and distribution channels are continuously looked for, supply conditions are optimised thereby systematically improving financial performance. In 2009 Armatura Kraków S.A. registered a sales revenue exceeding PLN 190 mln, PLN 19.2 mln EBITD and PLN 38.4 mln net profit.

Winning in a crisis environment is the leading motto of the new medium-term growth strategy of Armatura Group. The Group’s plans assume further consolidation of its position on the sanitary fittings and aluminium heaters market as well as expansion of the capital group by commission sales in the sanitary industry. The purpose of these operations by the Armatura Group is to increases sales to around PLN 350 mln by as early as 2012.