The European Bank for Reconstruction and Development (EBRD) is to provide financing of around 20 million euros to glass producer Stirom Bucharest for the finalisation of the restructuring process initiated by the company's majority shareholder, Yioula Glassworks of Greece.
The Greek company aims to finish the restructuring process with the expansion of the production line for glass containers, a statement by the financial institution says.
At the same time the loan contracted by Stirom and guaranteed by Yioula Glassworks is intended for regional expansion.
The total value of the project will amount to 44 million euros, according to data published by EBRD. Ziarul Financiar was unable to contact Stirom representatives by the time of going to press.
The Greek company acquired Stirom in 2003 when it started a large restructuring and modernisation process.
The program includes cost reduction measures through energy saving as well as improved use of production facilities.
For the first nine months of last year Stirom reported sales of around 22 million euros (890 billion ROL) and net profits of 3.2 million euros (130 billion ROL). The company is yet to release full-year financial data for 2004. In 2003 Stirom's turnover reached 28.7 million euros and its net profits were in the region of 5 million euros, according to Finance Ministry data.
The company was set up in 1966 under the name of Fabrica de Articole de Sticla Bucuresti (Bucharest Glassware Factory). It has an annual production capacity of 145,000 tonnes. The company has capital of 170.9 billion ROL (4.2 million euros).
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