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Leading Polish glass manufacturer privatised
Huta Szkla Jaroslaw, the leading Polish glass container manufacturer, was privatised on Monday when 76% of its shares were acquired by Owens-Illinois (OI) and several financial investors. The newly privatised company also signed a loan agreement for US$ 43.1 million with the European Bank for Reconstruction and Development (EBRD), to help modernise its plant.
OI Poland Inc., part of the US OI group and the world's largest producer of glass containers, has become the largest shareholder with 36% of the share capital. A number of fund management companies have 40%.
Ron Freeman, first Vice President at the EBRD, said "The expertise of Owens-Illinois coupled with the EBRD's loan will enable the company to really develop its products and carve a niche for itself in western markets. Getting its product to European Union standards will also impact positively on Polish agricultural producers who want to export their produce."
Gary Clinard, Owens-Illinois vice president and general manager of international operations, said, "We're pleased to have completed the credit facility with the European Bank for Reconstruction and Development, which will finance the modernisation of Jaroslaw. We're excited about the opportunity to help Jaroslaw meet the growing demand for glass packaging and to be part of Poland's efforts to build a vibrant and growing economy."
Huta Szkla Jaroslaw, situated in Jaroslaw a town in south-eastern Poland, will become one of the world's leading manufacturers of glass containers. Its modernisation will allow central European agribusiness firms to compete on the world market with state of the art glass packaging
The proceeds of the loan will go towards the partial or complete rebuilding of four furnaces, the purchase of new bottle making equipment and the installation of a cooling water treatment plant. Part of the EBRD's loan will be syndicated out to banks in early 1994.
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