|
European Bank signs soft drink loan in Poland
The European Bank for Reconstruction and Development has signed a loan agreement with Bydgoszcz Coca-Cola Bottles Ltd. (BCCB), a joint venture between the Polish company PUBREX Sp. z o.o., a state-owned construction company, and Ringnes AS, Norway's largest beverage company.
"This is the sort of project the Bank likes to be involved with - it has a positive impact for local business, employment and the environment," Ron Freeman, First Vice-President for Merchant Banking, said. "150 jobs have been created in the first year and further opportunities in terms of indirect employment are expected to double this number. Local suppliers have been given a boost as, except for the actual concentrate, all other ingredients are being procured locally."
The DM 11 million loan (ECU 5.6 million equivalent) is part of a financing package used for converting a shell structure into an operating production plant for soft drinks. In addition, BCCB has established a retail distribution network, with warehouses and delivery trucks, and through a franchise agreement with The Coca-Cola Company is marketing its products throughout its territory.
To meet the demand for high quality packaging products required by BCCB, Ringnes has also helped to arrange three joint ventures in Poland between Ringnes' traditional Norwegian suppliers and local Polish producers.
The total cost of the project is DM 31.5 million (ECU 16.1 million equivalent).
|
