| EBRD funds modernisation of leading metallurgical company in Bulgaria |
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02/09/2010 15:26 (527 Day 23:03 minutes ago) | |||||
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The FINANCIAL -- The EBRD is helping to increase energy efficiency and improve the environmental profile of KCM AD, the largest lead and zinc smelter in Bulgaria, with a €47.5 million loan to co-finance the company’s modernisation programme.
Established in the 1960’s and successfully privatised in 2000 by the company’s management and employees, KCM is one of the leading metallurgical companies in the Balkans. It currently produces 65,000 tons of lead and 75,000 tons of zinc annually, which is distributed mainly within markets in south-east Europe.
"The proceeds of the EBRD loan will be used primarily to replace an outdated lead production line with a new modern plant," EBRD reported.
The project, representing the first phase of the KCM’s two-stage modernisation programme, will improve the company’s financial and operational performance by cutting the smelter’s energy intensity and production costs. The investment will also lead to small increases in overall output.
The proposed investments will result in significant environmental and health and safety benefits. There will be a substantial reduction in emission of fugitive lead dust in the workplace and the local environment, resulting in improved employee safety and industrial hygiene conditions, and significantly reducing contamination of surrounding soils. The future usage of advanced technologies will also enable the company to meet strict EU environmental regulations.
The EBRD financing is complemented by a parallel €47.5 million loan from Unicredit Bulbank, which is also providing a significant level of working capital finance.
“The EBRD is pleased to support such an important player in the metallurgical industry in south-eastern Europe in its drive to reduce carbon intensity and improve environmental standards.” said Daniel Berg, EBRD Director for Bulgaria.
“We appreciate EBRD's and UniCredit Bulbank’s long-term commitment to KCM; without their commitment to this project during the crisis period we would not be able to proceed with these important capital improvements, which will improve our output and reduce our impact on the environment.” said Nikola Dobrev, Chief Executive Officer of KCM 2000.
Since the beginning of the EBRD operations in Bulgaria, the EBRD has committed over €2 billion in various projects in key sectors of the country’s economy. The Bank funds helped mobilise additional investment in excess of €5 billion.
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