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EBRD makes DM 125 million loan to General Motors/RABA joint venture
The European Bank for Reconstruction and Development today approved a loan of DM 125 million (ECU 61.4m) to General Motors Hungary (GMH) to help finance the establishment of an engine manufacturing and car assembly plant in Szentgotthard, Hungary, close to border with Austria. The project will be the largest direct foreign investment in Hungary with a total cost of DM 501 million.
The loan will have a seven year term.
GMH is a joint venture between General Motors, RABA, a state-owned company involved in manufacturing activities and the State Development Institution, a state financial institution. General Motors has a two-thirds majority in the joint venture
GMH will produce 1.4 and 1.6 litre gasoline engines for General Motors Europe auto-assembly plants in Spain, Germany, Belgium and the UK and will assemble Opel Astra cars primarily for the Hungarian market. The company will begin operations in 1992. At full capacity, GMH will produce 200,000 engines and assemble 15,000 Opel Astras per annum.
This investment will have a strong impact on the development of the automobile component industry. It will also directly provide new jobs for over 600 people.
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