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Stock exchange collapse continues, international companies in the country fight for survival

21 November 2011 / 22:11:37  GRReporter
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The Greek stock exchange fell again and is now below 700 basis points. At 4.00 pm, the main index reached 693.8 basis points, while turnover was just over € 19 million. According to Beta Securities, despite the internal changes in Greece, investors still see no real improvements in the economic environment, which is leading to lower turnover on the stock exchange. Despite the overall negative attitudes, many international companies see the Greek crisis as an opportunity for development and for laying the foundations for sustainable growth.

Companies in traditionally strong sectors of food and drinks such as Barilla HELLAS SA, Heineken and Kraft Foods are ready to ignore the unfavourable tax environment and the general problem of lack of liquidity and to expand their influence in the country and the region.

Every year Barilla HELLAS SA invests about four million euros in the expansion of the company, and this year, the Greek office has become the administrative centre of 19 countries. "The company continues to invest and strives to seize opportunities and comparative advantages that Greece has as a natural starting point for access to new business growth opportunities, emerging in the developing markets of Eastern Europe," said the Managing Director for South Europe, George Spiliopoulos.

Despite the difficulties and decline in consumption, the famous Heineken beer brand also remains on the market through its subsidiaries. Jac Van Herpen, Chief Executive Officer of Athenian Brewery SA, said that the company would continue to invest to save the jobs and what has been built here. He did not fail to note, however, that he would expect the Greek state to trigger serious structural reforms to enable economic recovery. The businessman insisted on a more stable and fairer tax system, which is the weak spot of the Greek economy, more transparency in government activities and less bureaucracy. By the end of 2011, investments of Athenian Brewery SA will reach 25 million euros, aimed primarily at production facilities' modernization. They will give immediate results and productivity and prove that the company does not intend to withdraw from the Greek market despite the crisis.

The Managing Director of Kraft Foods-Greece SA, Lefteris Haloulakos, said the company has invested not only in manufacturing and production, but also in human resources, which it will not abandon. Haloulakos believes that the crisis has created conditions for sound bases for the future of Greece and for restoring economic growth.

Other companies that see future prospects in troubled Greece include the automobile company FIAT. The economic manager of Fiat Group Automobiles Hellas, Stefano Silvina, believes that his company will even benefit from the economic crisis, because consumer attitudes are changing. People are looking for smaller, fuel-efficient cars and FIAT offers a wide range of small and medium cars, which have become increasingly popular in the country. To maximise sales, the company now offers more flexible repayment terms for the cars.

Not all companies are able to withstand the crisis and several large corporations have changed their investment plans. The German chain for electronics, Media Saturn SA, has closed its shops under the name Saturn, because they have not brought the expected results after their opening, and dismissed half of the staff. Three of the shops of the failed chain were renamed and entered the family of the technology retail centres Media Markt, which are now 10 in number. The wind of change is blowing in Coca Cola 3E, which is still based in Athens, although it has recently established a human resource management and economic services centre in Sofia, Bulgaria. In Greece, Coca Cola 3E is introducing serious spending cuts, but in neighbouring Macedonia, it has bought a competitive company.

Tags: Coca Cola 3E Kraft FoodsEconomyCompaniesCrisisGreeceFailureStock exchange
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