Oil segment

Production
The greatest influence on the decline in production was the drop in demand for high-polyaromatic products for ecological reasons. In effect, the Paramo offer was less popular among rubber industry customers. In order to maintain its market position, in 2009 Paramo plans to implement a special investment programme aimed at significantly reducing the aforementioned compounds in the products provided by the Company.

Despite the weak market in the area of lubricants, in 2007 the Company generated a good result in the total segment of lubricants and base oils, whose production increased by over 7 percent in comparison to 2006. The result generated by Paramo was mainly attributable to the dramatic increase in the sales of desulphured base oils from the plant in Kolin.

Despite the general decrease in sales in 2007, the Company maintained its market share at a level of 30 percent in the industrial oil segment and 25 percent in the engine oil segment.

The volume of exports in 2007 totalled 38 thousand tonnes and was by 5.7 percent higher than in 2006. The highest share of the volume of products sold abroad was taken by base oils, of which Paramo sold almost 14 thousand tonnes. The key customers were buyers from Germany, Switzerland, Poland, Austria, Ukraine and Hungary.

Production volume in Paramo in 2006–2007 (tonnes)

	2006	2007	Dynamics
Lubricants and base oils	55 915	59 890	7,10%
Other products	26 005	20 594	-20,80%
Total	81 920	80 484	-1,75%

Sales volume in Paramo in 2006–2007 (tonnes)

	2006	2007	Dynamics
Lubricants and base oils	56 502	59 087	4,57%
Other products	27 010	20 440	-24,32%
Total	83 512	79 527	-4,77%