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EBRD supports SC Donasid SA
€10 million loan to help increase steel production at Calarasi plant
The EBRD is lending S.C. Donasid S.A. €10 million to help complete
restructuring at its plant in Calarasi, south-east Romania. The loan will
finance mainly technological upgrades that will help increase production of
steel billets from a current 300,000 tons per year to its full potential of
450,000 tons. Steel billets produced and sold by the company are used for the
production of seamless steel pipes.
Hildegard Gacek, EBRD Director for Romania, said the Bank’s loan would help
restructure Donasid to turn it into a successful industrial enterprise. With a
number of industrial restructurings and privatisations remaining in the
country, the loan should demonstrate to other investors the successful role
the EBRD can play as a partner, said Mrs Gacek.
Established in 2003, Donasid was acquired in 2005 by Tenaris S.A. – a
Luxembourg based company that is the world's leading manufacturer of seamless
tubular products and services for the oil and gas industry. The company is
also a leading supplier of tubular products and services used in power plants
and in specialized industrial and automotive applications. Initial investments
by Tenaris helped restart the plant in 2006 to produce its current quantity of
steel billets. The EBRD loan will help significantly increase that capacity.
The steel billets produced by Donasid will be mostly delivered to
TenarisSilcotub, another Tenaris production unit located in Zalau, and will be
used in the production of its high-quality seamless steel pipes.
Paolo Bassetti, Executive Vice President of Tenaris’ operations in Romania,
said the EBRD loan is important in helping Tenaris realise its strategy to
increase production of steel billets that will in turn help produce more
seamless steel pipes at Silcotub. This will enable Tenaris continue to be a
global player in the production of steel pipes, said Mr Bassetti.
To date the EBRD has invested over €3.2 billion in Romania through more than
110 projects. In addition, the Bank has mobilised more than €6 billion
investments in the country from its partners.
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