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EBRD to finance brick plant in Bulgaria
Brick maker Wienerberger to target local market
The EBRD is supporting the fast-growing Bulgarian construction industry with an €6.75 million loan to a brick plant near the town of Lukovit in north-western Bulgaria. By cooperating with a successful western company which is keen to expand to eastern Europe, the EBRD is promoting private-sector growth, the creation of jobs and attracting foreign investments in Bulgaria.
The Bank’s finance comprises a €6.75 million loan to Wienerberger Bulgaria, a wholly-owned subsidiary of Wienerberger AG, one of the world’s largest producers of bricks.
The EBRD finance will be used for the reconstruction and modernization of the existing brick plant Lukovit, 120 km north-east of Sofia. The plant will have an annual production capacity of more than 150 million standard brick units and will primarily produce high insulating Porotherm hollow bricks. The majority of the production volume is expected to go into residential construction. Total project costs are estimated to be €29 million.
Wienerberger will target the Bulgarian brick market with locally produced bricks where demand is high and production so far is insufficient. The company will offer high-quality products and plans to gradually increase output and market share in the coming years.
Signing the project, EBRD President Jean Lemierre said the project will bring modern, world-standard technology to the Bulgarian brick sector and will increase efficiency, quality and reliability. It will enhance competition and transfer skills and know-how to a local company, thus benefiting the whole sector.
Wienerberger’s investment in Bulgaria is the fifth project with the EBRD, four of which fall under a multi-project facility, signed in 2004. Previous projects were realised in Romania and Russia with two transactions in each country.
Karl Thaller, Member of the Managing Board of Wienerberger International N.V., said: “The EBRD is a valuable partner for us in pursuing our expansion strategy in eastern Europe. After our successful greenfield projects in Romania and Russia, we are pleased to be working with the EBRD in Bulgaria as well. We appreciate their contacts to local authorities as well as their support in financing our profitable growth projects in eastern Europe.”
Wienerberger is the world's largest producer of bricks and ranks second in the clay roof tile market in Europe. The group also holds leading positions in pavers in Europe. With a total of 253 plants, Wienerberger operates in 26 countries and 5 export markets.
The EBRD is the largest investor in Bulgaria with more than €1.4 billion committed to projects across the country. Working with its many partners, the Bank has mobilised more than €5.7 billion for projects in Bulgaria.
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