Translated version of this PSD: Romanian
Project Description
The EBRD is considering providing €10 million equity finance to Universal Alloy Corporation Europe (“UACE”), a producer of aluminium components for the aerospace industry located in north western Romania. The total investment in this new facility is expected to be €42 million, out of which €28 million has already been contributed and deployed. The EBRD’s contribution will be to support the development of an integral cast billet facility attached to the extrusions presses and an aerospace machined parts manufacturing facility.
Transition Impact
The main transition impacts of this operation are the demonstration effects of new products and processes (higher value added); improved business standards; and the introduction of technological skills. It is expected that such knowledge will expand beyond one company to other aerospace companies based in Romania. The project could lead to further investments in Romania in higher value added manufacturing for the aircraft sector by demonstrating its benefits to other companies.
The Client
UACE is part of the Aerospace division of Swiss group Montana Tech Components AG (MTC) which also owns Universal Alloy Corporation in the United States (UAC US). UACE will benefit from the support of UAC US, the number two worldwide player in heavy and small and intermediate extruded components for the aircraft industry. MTC also has business lines in industrial components, special machinery for product identification in the metallurgical area and button cells and rechargeable and primary batteries for Original Equipment Manufacturers and retail customers.
EBRD Finance
The investment is €10 million equity finance to UACE. Additional finance for the project will come from the internally generated cash.
Project Cost
€42 million
Environmental Impact
Screening Category: A due diligence site visit by the Bank’s Environmental specialist confirmed that potential adverse environmental and social impacts associated with the project are site specific and readily identified, and can be addressed through mitigation measures. Accordingly, the Project has been screened as Category B.
UACE is developing robust management systems to address environmental and health & safety risk and the current management have strong capabilities in these areas based on their previous experience in North America. UACE has further agreed to develop stakeholder engagement mechanisms in line with the Bank’s Performance Requirements.
EBRD’s due diligence identified issues associated with wastewater disposal and minor issues associated with hazardous materials containment for which mitigation measures were identified and agreed with the company in an Environmental and Social Action Plan.
Technical Cooperation
None.
Company Contact
Dragos Ungurean, President
Universal Alloy Corporation Europe
244A Dumbravita, Maramures, Romania
Tel: +40-262-202306 Fax: +40-362-418988
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.
