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EBRD loan to cut energy costs at Ukrainian glassmaker, boost competitiveness
Financing just the latest in a series of energy efficiency loans
The EBRD is lending the Ukrainian glass company OJSC Vetropack Gostomel Glass
Factory up to $59 million to help cut energy costs, and to increase output of
quality glass packaging to 750 million units per year, a 40 per cent increase
from current capacity.
This EBRD loan will help Vetropack Gostomel slash energy costs by 33 percent,
a crucial step for an energy intensive industry such as glass manufacturing in
a country where energy costs have recently risen sharply. Potential annual
savings for Vetropack Gostomel can reach up to 9.2 million cubic metres of
natural gas (equivalent to the annual consumption of 17,800 inhabitants in
Ukraine), as well as 6,800 MWth of electricity (equivalent to the annual
consumption of 8,300 Ukrainian inhabitants of Ukraine).
In addition to being more energy efficient, the current investment will
increase Vetropack Gostomel’s melting capacity by 40 per cent at increased
quality - improving the company’s competitive position and injecting greater
competition into the whole sector. Vetropack Gostomel offers a wide variety of
state-of-the-art glass packaging to its clients, similar to that available
countries of Western Europe.
This will be a senior loan, which will partly refinance the existing debt of
the company, will be provided in two phases, part of which will be syndicated
to commercial banks. It will also help to secure Vetropack Gostomel’s
competitive position and to develop new standards of corporate governance.
Today Vetropack Gostomel is among the largest glass packaging manufacturers in
Ukraine. Established in 1912, the company was privatised in 1993. In February
2006 a majority stake was acquired by the Vetropack Group, a leading central
European glass manufacturing group producing more than 3.5 billion glass
containers annually. Vetropack is an independent family run company with its
headquarters in Switzerland. Vetropack has operational companies in
Switzerland, Austria, Czech Republic, Croatia, Slovakia and Ukraine for the
production and distribution of glass packaging.
Gilles Mettetal, Director for Agribusiness is “pleased that EBRD is expanding
its long lasting cooperation with Vetropack as well as Gostomel” and adds “to
be proud of having contributed to Gostomel’s success story so far”. Besides
the investment, further steps include the introduction of new standards of
corporate governance and a group-wide reporting and management information
system.
David Zak, CFO of Vetropack Group is “confident that Vetropack’s know-how
combined with EBRD’s on going support provides Vetropack Gostomel with the
prerequisites for lasting success in Ukraine”.
The EBRD is the single largest financial investor in Ukraine, having committed
to date a total of EUR 2.2 billion across all sectors of the country. The
EBRD has committed EUR 4.2 billion in 292 transactions to assist the
agribusiness sector in Central and Eastern Europe and the Commonwealth of
Independent States (CIS).
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