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EBRD loan to help Croatia's No. 2 cement producer become more efficient and seek new acquisitions
Nasicecement d.d., Croatia’s second-largest cement producer, signed a €20 million loan agreement today with the European Bank for Reconstruction and Development (EBRD).
The loan will support plans to reduce the company’s operating costs by switching from gas to coal as the principal source of fuel in the cement kiln. It will also provide financing for potential acquisitions in related businesses in the region.
It is likely that the project will be supported by a parallel loan of a further €5 million by a local Croatian bank in the coming weeks.
Alain Pilloux, the EBRD’s Business Group Director for Central Europe, said: "The Bank is particularly pleased to support local private companies, especially those like Nasicecement that are committed to improving production, distribution and corporate governance. This increases competition in the sector while setting an example to the Croatian private sector at large. Moreover, companies like Nasicecement, which want to expand into neighbouring economies, are beginning a process of regional reintegration and cooperation."
Ivan Ergovic, general manager and majority shareholder of Nasicecement, called the deal with the EBRD "an important milestone" for Nasicecement. "The management and employees have given the highest priority to strengthening and improving Nasicecement’s operations," Mr Ergovic said. "This project demonstrates our continuing efforts to be even better and remain one of the best manufacturing companies in Croatia."
Nasicecement is located east of Zagreb, near the town of Nasice, in the Slavonia region. It remains the only independent cement producer in Croatia.
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