14 february 2011
GMCS will help Viru Keemia Grupp transition to the EU reporting standards
Viru Keemia Grupp AS (VKG) is the largest industrial company in Estonia which is in the process of adjusting the accountability to the single standards applicable in the Eurozone.

The partner in the project is GMCS – a company which will ensure the VKG concern maintenance in the corporate information system based on Infor ERP LN (Baan IV) financial, logistic and production data in accordance with new standards.

The Viru Keemia Grupp concern is the largest slate processor in Estonia and one of the major chemical manufacturers in the Baltics. The concern is comprised of 8 companies manufacturing a wide range of products: shale oil, shale gas, bitumen, resins, a variety of chemicals. To upgrade the complex's planning and management system the Viru Keemia Grupp concern engaged in 2002 GMCS into the Baan ERP implementation project which was successfully accomplished within a record-breaking period.

Due to Estonia's accession to the Euro zone on January 1, 2011, the government of this country has established a specific deadline for preparation to the transition of the companies' accounting and reporting systems to the European currency. In October 2010 VKG addressed GMCS with the task of preparing the Infor ERP LN (Baan IV) system for operation under the unified reporting standards adopted in the EU member states.

"Preparation of the information component of business for exercising financial management in conditions which are new for the whole country is an extremely important step. Therefore, the enterprise engaged GMCS – who is a time-proven partner for us – for the purposes of implementation of this project," comments Ludmila Paladi, Finance Director at VKG Oil (a subsidiary of VKG).

To avoid delays in production processes, maintenance of the data on reserves within the information system shall be transferred to the new standards within shortest time possible. To tackle this task GMCS specialists have developed, in collaboration with VKG, an applicable transition algorithm. The transition of the company to accountability in euro currency is planned to be completed during February 2011.

"Projects like the one which is currently being implemented by VKG require great responsibility both on the part of the contractor and of the customer. The strategy developed in partnership with VKG specialists will help to implement a really prompt transition of the company to the new accounting and reporting standards," says Vladimir Norenko, Deputy Head of the Infor Solutions Department at GMCS.

About Viru Keemia Grupp

Viru Keemia Grupp (VKG) is the largest manufacturer of shale oil and shale chemicals in Estonia. VKG production includes the entire range of shale manufacturing: from extraction and processing to the market launch of clean chemical products. VKG is comprised of 8 subsidiaries with the parent company owning 100% of stocks in 7 of the subsidiaries. The companies annual production export to various countries of the world totals about 1 billion kroons. The bulk of products manufactured by the concern are exported to Latvia, Lithuania, Finland, Russia, the United Kingdom and Belarus.
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