Another agreement provides for cooperation within the newly established entity, i.e. Isabella PL Sp. z o.o., in which Lubawa S.A. will take-up 49% shares, and the transfer of the entire production to Poland.

- Together with our partners we have decided to extend our long-term cooperation, informs Marcin Kubica, President of the Management Board of Lubawa S.A. So far, the Company provided services of sewing products for Isabella A/S, based on material received from the Danish company and partly by using its stock of machinery which operated on a fixed basis in the Polish plants. In this way, about 40% of Isabella A/S demand was handled, especially for the purposes of tent awnings for caravans. The remaining 60% of the production was done at plants in Denmark and in the Czech Republic.

- As a result of months of negotiations Isabella A/S decided to move all of its production to Poland and continue it within the newly established entity called Isabella PL Sp. z o.o., adds Marcin Kubica. According to the Head of the Company, Lubawa S.A. is going to take-up 49% of the shares in the ownership structure of the entity and have control in key areas of the operational and strategic activities of the company (qualified majority at the Shareholders' Meeting voting). The company will also have the guarantee of participation of its representative in the Management Board of Isabella PL Sp. z o.o. The remaining 51% will remain in the hands of Isabella A/S.

- The provisions of the master agreement ensure our share in the growing turnover and profits of the newly established entity. I am convinced that in the long term this cooperation can be translated into a significant and steady increase in profit on the part of Lubawa S.A., says Marcin Kubica.

Within the established joint venture company we will seek to increase the Lubawa Group's share in the supply of raw materials, he adds. By now, the products of Isabella A/S were made of components purchased mainly in Western Europe. After obtaining satisfactory quality parameters, it will be possible to use the materials manufactured in the entities belonging to the Group, i.e. woven and knitted fabrics produced by Miranda Sp. z o.o. and frames and plastics manufactured by Litex Promo Sp. z o.o. which will have a positive impact on the activities of the entire Lubawa Group.

Isabella PL Sp. z o.o. will commence its operations on 1 January 2014.