EBRD provides Slovenia’s Salonit with €15 million loan

By Axel  Reiserer

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Building materials producer to invest in energy and resource efficiency measures

A €15 million loan provided by the European Bank for Reconstruction and Development (EBRD) is set to improve the operations of the Slovenian building materials producer Salonit Anhovo (Salonit).

The funds will be used for energy and resource efficiency improvements and to restructure the company’s balance sheet. The planned investment will move Salonit to within the top 1 per cent of the EU cement industry in terms of production efficiency and low carbon intensity.

Salonit is a leading, vertically integrated producer of building materials, producing aggregates, clinker, cement and concrete. The company’s facility is the largest in Slovenia and alternative fuels currently account for 64 per cent of all the fuels the firm uses for burning clinker.

The EBRD loan will be invested to increase this ratio further to improve the company’s profitability and reduce CO2 emissions. A precondition for increasing the ratio of alternative fuels is the installation of state-of-the-art equipment. The investment will also have a beneficial effect on operational costs, which are expected to decline thanks to the adjusted fuel ratios.

Jolanta Gabriel, EBRD Associate Director, Head of EBRD operations in Slovenia, said: “We welcome this agreement with Salonit as it allows us to address two important issues at the same time. Our loan will strengthen the operations and competitiveness of a major Slovenian company. It will also lead to improvements in energy and resource efficiency in accordance with the EBRD Green Economy Transition approach.”

Julijan Fortunat, President of the Management Board, Salonit Anhovo, commented: “For Salonit Anhovo, qualifying for an EBRD loan is an important confirmation that we are implementing the right strategy and have achieved a high level of performance among Europe’s best producers. The loan will significantly strengthen our competitive position in the region. I would like to point out that the EBRD’s integrated due-diligence process has been a positive challenge for our employees, which we have passed successfully. The conclusion of the loan agreement with the EBRD will support the management’s ongoing efforts to implement our capital investment plan and will give the company a basis for sustainable growth and investment in state-of-the-art technology focused on improving energy efficiency and environmental impact.”

The EBRD has been active in Slovenia since 1991 and has invested in all sectors of the economy. Since the beginning of its operations, the Bank has invested some €930 million in 75 projects in the country. The latest EBRD country strategy, adopted by the Board of Directors in February 2014, sets corporate restructuring, stabilisation of the financial sector and support for sustainable energy as the Bank’s priorities in Slovenia.

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