The year 2000 was a difficult year for FANCO SA. After the changes made at the Top Management in February 2000, a critical project was set up for the complete reorganization of the company.FANCO SA remains pioneering in a lot of sections: ·Full integration of its production through the operation of FANCO Spinning Mills. ·Competition of the transfer of all labor intensive operations in its subsidiaries in the Balkan states and integration of its production units. ·Emphasis on environmental protection and energy through a business policy that was awarded with the ?Business and Environment? prize by ACCI.In many fields FANCO SA was not very well prepared to face the outcomes of a tough competition which grow along with the Globalization of the Market.Within 2000, FANCO had the chance to experience remarkable upsets and gain profits by its 3 subsidiaries companies, namely FANWARE SA, Spinning Mills FANCO SA and FANTEX SA (The total profits reached the amount of 280 million drs).The fiscal year 2000 FANCO SA closed without profits which was expected.During the period 2000-2001, FANCO SA estimates that it will not benefit directly from the continuous efforts to regulate and minimize operational costs due to: ·The continuing expansion in the Balkan countries. ·The new and big investments in the main factory unit in Komotini. ·The significant cost of reorganization ·The unexpected increases of the prices of raw materials, US dollar and petroleum. ·The oversized offers in sports and casual wear worldwideWithin 2000, FANCO SA, has also decided to clear completely all its stock and estimate it at prices in which it can be sold. By this way, FANCO SA succeeds the clearing of its warehouses and the transparency for its forthcoming Balance Sheets.The disposal of the stock will help the company further to reduce operational cost as well as Operating Capital. To balance the current loss, as appears in the 2000 Year Balance Sheet and with the aim to strengthen competitive advantages of the company, FANCO SA, has decided to pursue the following strategic targets:· Creation of a R&D department (perhaps as an autonomous unit) with the aim to develop new products that will facilitate the gain of remarkable profits in 2002-2003. ·Expanding in new products, apart from sportswear, will permit increase in sales and better profit margins. ·In the framework of continuous efforts to minimize costs, the emphasis given by FANCO SA in its core business will also succeed in better surplus values. ·The set out of synergies with other companies, members of the KLONATEX GROUP will also facilitate economies of scales and significant improvements at all financial figures.