Pioneer Aluminium Factory Hold 43rd AGM

Pioneer Aluminium Factory Limited has held its 43rd Annual General Meeting for its shareholders at the Trade Fair site in Accra.

Mr. John Percival Awuku Nyarko, Chairman of the Board of the aluminium company said the economic and trading environment continues to be difficult despite improvement in some key economic indicators. He added that Ghana's Real Domestic Product (GDP) grew to 4.5 percent while inflation dropped further to 15.2 percent from 21.9 percent in 2001. "The increases in the cost of utilities and fuel put a squeeze on personal incomes while increasing the cost of production" he said.

Mr. Percival Awuku Nyarko said competition was fierce in 2002 because more "garage operators" entered the market, offering small set of cooking utensils at cheaper prices, putting heavy downward pressure on the profit margins of the company. He requested that Government should try and minimize the importation of cooking utensils because it is not in the interest of the local industries.

He said production output for the year was below target because of erratic supply of raw materials. Despite the decline in overall sales performance, trading profit was good. This improvement he said can be attributed to better management of assets.

His forecast for this year is that it would be more difficult than last year because of the effect of the increase in the cost of utilities and fuel adding that this would further put pressure on the purchasing power on people.

On the objectives for the year he said the company aims at regaining its position in the aluminium hollowware market in Ghana and entering the regional export market as well as diversifying its product line.

Finally he expressed his gratitude to the shareholders, its valued customers and its committed employees for their continuing support and encouragement.

At the end of the meeting shareholders received and adopted the audited financial statement of the Company for the year ended December 31, 2002 together with the reports of the Directors and Auditors thereon. They re- elected the board of Directors, fixed Director's remuneration and authorized the Directors to negotiate and determine the remuneration of the Auditors for the ensuing year.