The injection of 6 million euros of new capital into Pehart Tec will support the company's drive to increase its production of tissue products by offering a high-quality alternative to more expensive imports.
The company will use the funding to increase export opportunities throughout the region, help to increase production volumes and introduce a range of new value-added products.
The company will also use the EBRD proceeds to finance energy efficiency investments that will make the plant around 80 per cent self sufficient in electricity, reducing its overall energy costs significantly, by more than 1.5 million euros annually.
This first equity investment in a private Romanian company demonstrates the EBRD’s willingness to provide new capital to well-run private businesses in Romania.
“The EBRD is pleased to become a shareholder in this successful Romanian company which is setting new and higher standards in the Romanian tissue paper industry. Supporting well managed local Romanian companies is a priority for the EBRD”, said Claudia Pendred (photo), Director of the EBRD office in Romania.
The European Bank for Reconstruction and Development has been involved in the biggest deal of 2009: the institution provided 44 million euros in portage equity to Renault Technologie Roumanie who will construct an automotive testing center at Titu.
The total cost of the project stands at 166 million euros and Renault has already invested in RTR some 36 million euros.
”We welcome the EBRD investment which complements an investment programme of over €26 million initiated by Pehart Tec, a member of MG Tec Group SA”, said Ioan Tecar, President of MG Tec Group SA.
Following the new investment, the company’s turnover would rise from 1.8 -2 million euros per month to 4-5 million euros. Furthermore the company’s headcount should reach 380.
Previously, MG Tec has invested 10 million euros in the producer of paper tissue aimed at reducing costs incurred by electricity supply as well as lifting total sales from 20% to 49% in the local market, the rest being earmarked for exports.
To date the EBRD has committed over 4.2 billion euros to more than 250 projects in Romania in the corporate, financial, energy and infrastructure sectors.
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