Investment will generate new jobs in the country
The European Bank for Reconstruction and Development (EBRD) is supporting the expansion plans of the Italian cable manufacturer La Triveneta Cavi in Moldova with a €6.2 million loan to its Moldovan subsidiary La Triveneta Cavi Development SRL.
The EBRD funding will co-finance the company’s plans for the construction of a €17.2 million greenfield cable manufacturing plant in the newly-created industrial park in Strășeni, some 20 kilometres from the Moldovan capital Chisinau.
The plant will produce low and middle voltage electrical cables for use in buildings, industrial processes, power distribution, telecommunications and data transmission. It will have the capacity of 12,000 tonnes each year and will initially employ up to 100 people.
Frederic Lucenet, Director for Manufacturing and Services at the EBRD said: “We are pleased to support much-needed job-generating foreign direct investments in Moldova while helping an Italian investor expand production, optimise costs and ensure increased supply to its growing client base. La Triveneta Cavi is establishing Moldova’s first manufacturing plant of low and middle voltage cables and will bring new skills, technologies and innovation into the country.”
Based in Italy’s Vicenza province, La Triveneta Cavi has been in the cable industry since 1965. This new plant in Moldova is the first time the company has invested abroad. They chose Moldova because of its geographical position, lower energy and labour costs.
Fabio Fracasso, General Manager of La Triveneta Cavi Development SRL and member of the Board of Directors of La Triveneta Cavi, said: “It is a special distinction for La Triveneta Cavi that the EBRD supports our project in Moldova. This investment represents significant help for our strategic decision to expand our operation and increase our production capacities beyond Italy, as to serve our increasing client base. We appreciate the EBRD’s decision to partner with us in accomplishing this ambitious goal and in this geographic region, which we think has potential for economic growth. La Triveneta Cavi group is glad that the project will also help bring know-how and innovation into the Moldovan manufacturing industry.”
Driving foreign investment in partnership with innovative investors is a priority for the EBRD in Moldova. The Bank has previously financed the expansion of the German automotive component supplier Draexlmaier and the construction of a greenfield plant by the Austrian automotive cables manufacturer Gebauer & Griller, both located in the Free Economic Zone of Bălți, Moldova’s second largest city.
The EBRD is the largest institutional investor in Moldova, where it focuses on supporting private sector activity, promoting European standards and regional integration and developing efficient, sustainable public utilities. To date the Bank has invested almost €1 billion in more than 100 projects.