The EBRD is providing €3.7 million mezzanine financing (subordinated debt) to Industrial Mecano, a private Romanian manufacturer and supplier of packaging solutions for consumer goods and industrial purposes, to support the company’s development strategy and help create new jobs.
Industrial Mecano serves over 350 clients in Romania, including large corporates in the food and beverages sector, the construction materials sector and also retailers.
The EBRD financing will enable the company to increase its output capacity and expand its current product portfolio with higher value added packaging solutions, which are currently imported to Romania. In addition, the proceeds of the subordinated loan will be used to relocate Industrial Mecano’s operations from within Bucharest to the outskirts of the city, to new premises which are more efficient from both an energy and work-flow perspective.
“Supporting private Romanian manufacturing enterprises is one of the EBRD’s priorities and we are pleased to assist Industrial Mecano in its drive to launch new products, create new jobs and increase competitiveness. This project will help the company strengthen its corporate governance and will give a boost to the further development of the packaging sector in Romania”, said Claudia Pendred, the EBRD Director for Romania.
“We are very pleased to work with the EBRD who we believe will add significant value to our company and help us to increase the volume and range of products we manufacture, including import substitutes, said Leontin Pascaru, General Manager Industrial Mecano.
Since the beginning of its operations in Romania, the EBRD has committed over €5 billion to various sectors of the country’s economy, mobilising additional investment of over €9 billion from other sources.