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European Bank US$ 7 million loan for Hungarian packaging company
The European Bank for Reconstruction and Development has signed a USD 7 million loan agreement with PCA-Budafok (Paperboard) Kft, the only Hungarian manufacturer of recycled paperboard and folding carton materials.
The loan will be used to upgrade the quality and productivity of the existing recycled paperboard facility, enabling the company to recapture sales in the domestic market. PCA-Budafok will also be able to build on its strength of being strategically placed to compete in export markets, particularly in the Middle East and the former Comecon trading countries.
Ron Freeman, First Vice President for Merchant Banking, said "Packaging is a growing industry in Hungary. The fact that the Bank can help this company compete effectively is even more important considering the environmental benefits."
PCA-Budafok is a new joint venture formed between Packaging Corporation of America (30%), a subsidiary of US-based Tenneco Incorporated and Papiripari Vallalat (70%), the Hungarian state-owned paper industry holding company.
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