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EBRD finances Czech textile company
Technolen WF a.s., a leading Czech textile company, will double its capital from CZK 225 million to CZK 450 million through a capital increase. In parallel, in order to consolidate Technolen's operations and to modernise its production facilities, the European Bank for Reconstruction and Development (EBRD) has granted a DM 16.9 million (ECU 8.86 million) loan, which was signed yesterday in Prague.
Ron Freeman, First Vice President of the EBRD, said: "The twin objectives of this EBRD loan are to satisfy the growing requirements of Technolen's domestic and foreign customers, and to achieve a stronger market position by enabling it to reduce production costs and improve the quality of its products".
A strategic Belgian industrial investor, Wittock Industry N.V., specialising in industrial textiles, and the Czech and Slovak Investment Corp. Inc., a Flemings managed fund, will make equity investment in Technolen through the capital increase amounting in aggregate to CZK 240 million.
The inflow of funds from both sources will allow Technolen and Wittock to undertake a three-year investment plan which will include a systematic replacement of existing equipment and the acquisition of new types of machinery. It will also upgrade Technolen's infrastructure, with further investments in computer systems and software, environmental works and refurbishment of buildings.
Technolen, founded in 1808 and regarded as the leading manufacturer of technical textiles in the former Comecon countries, produces a wide range of durable products such as woven and non-woven fabrics manufactured for specialised industrial uses. The company currently operates a number of facilities in the Czech Republic. Its activities include spinning, weaving, washing, dyeing and finishing of cotton, linen, polyester and polyamide fibres. Technolen currently exports more than 55 per cent of its sales, with 48 per cent directed to Western markets.
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