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EBRD makes ECU 4.89 million (DM 10 million) loan to Hungarian firm
The European Bank for Reconstruction and Development today announced a loan of ECU 4.89 million (DM 10 million) to Petöfi Nyomda Rt., a recently privatized packaging company in Hungary. The loan, which will represent approximately 40 percent of the company's investment programme, will help finance the modernisation of production processes, the expansion of production capacity and improvements to product quality and customer service in Petöfi Nyomda's current business, which is the production of folding carton boxes, paper labels and flexible packaging materials.
The original Petöfi Printing House was established in 1841. In recent years it has expanded its product line into packaging materials, which now drive the company's growth, and recruited new management. In September 1990 Petofi Nyomda became a limited liability company and was partially privatised by Compagnie Hongroise Financière; it was fully privatised in May 1991. Operating from a site in Kecskemet, 100 km south east of Budapest, Petöfi employs some 600 people.
It is hoped that full implementation of the investment programme will assist Hungarian products, using Petöfi's new standards of packaging, to become more competitive in western European export markets and to maintain market share in the domestic economy in the face of growing imports.
In line with the policy of the Bank an environmental analysis has been conducted and the project has satisfied the Bank's environmental criteria.
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