The EBRD is acquiring minority shareholding rights in the Ukrainian packaging producer Khask Group. The Bank’s proceeds will be used for the expansion of Khask’s production of self-adhesive tapes and high quality flexible plastic packaging materials.
The investment will finance acquisition of the state of the art equipment, which will allow Kharkiv-based Khask to implement its expansion programme. Following the food sector recovery the plastic packaging materials segment is expected to on average grow by 14 per cent in 2010-2017 and upon the installation of new production capacities Khask will be well positioned to meet this growing demand for high quality food packaging.
Khask, in particular, is planning to increase production of packaging based on PVC film and packaging based on paraffin paper for the Russian, the Kazakh and the Ukrainian markets.
The project will also support Khask’s strategy aimed at maintaining its position of a largest CIS producer of self-adhesive tapes. It is in line with the Bank’s strategy to support domestic producers, which will help substitute imports with cheaper and good quality locally-produced packaging materials.
The European Bank for Reconstruction and Development is the largest financial investor in Ukraine. As of 30 June 2011, the Bank had committed over €6.5 billion ($9.3 billion) through 276 projects.