Fibrex

Location:

Romania

Project number:

6354

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

C

Target board date:

17 Oct 2000

Status:

Completed

PSD disclosed:

28 Sep 2000

Project Description

An EBRD medium-term loan to Fibrex SA, a Romanian nylon producer, would support the restructuring effort following its privatisation. The Romanian Ministry of Finance sold Fibrex to RadiciNylon SpA in January 2000. RadiciNylon, based in Italy, is the third largest nylon fibre producer in Europe and having already integrated Fibrex into its worldwide operations strategy intends to modernise the plant and increase production capacity.

In addition to its own financing of Fibrex’s operations, RadiciNylon, has asked the Bank to provide a € 10 million loan to support the development process. The priority is to return Fibrex to profitability and improve the quality of its production. RadiciNylon is introducing Fibrex’s products to new export markets in Western Europe.

Transition Impact

The transition impact is significant as the loan provides post-privatisation support. The demonstration effect of a major restructuring effort by a foreign investor in a difficult industry, such as the chemical sector, benefits Romania. The availability and improvement of Fibrex’s products will also benefit the local textile and automotive sectors.

The Client

The borrower will be Fibrex SA, a Romanian joint stock company, which produces nylon fibre for the textile industry and tyre cord for the automobile industry. RadiciNylon is a privately owned company headquartered in Bergamo, Italy. RadiciNylon is part of Radici Group, which started its activities in 1920 in the trading of textiles, entered industrial production in 1945 and integrated vertically into chemical production in 1970.

EBRD Finance

€10 million loan repayable in two years.

Project Cost

€10 million.

Environmental Impact

The project was categorised as C/1, requiring an environmental audit, which was carried out by an independent environmental consultancy firm. A five-year Environmental Action Plan (EAP) has been developed which includes short-term, low cost remediation measures, and measures to be implemented under the future investment projects. Fibrex will be required, through a legal covenant of the loan agreement, to commit to the implementation of the EAP. The implementation schedule for the EAP is phased over five years and the major environmental improvements are anticipated in years 2001 and 2002. It is anticipated that, if this working capital financing proceeds, the Bank will develop a second phase operation at Fibrex, which would enable the plant to implement the EAP fully and meet EU environmental standards.

Technical Cooperation

None.

Company Contact

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.