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EBRD to invest in Russian wood processing plant
A DM 14.8 million (ECU 7.74 million) financing arranged by the European Bank for Reconstruction and Development will enable Zapsibinvest, a Russian limited liability partnership, to expand its timber products business and increase its export potential.
Participating in the financing for Zapsibinvest are: the Bank for Foreign Trade of Russia, DEG-German Investment and Development Company, the Russian-American Enterprise Fund, and the Russian Commercial Bank, Zurich. The loans, which were signed today in London, will enable Zapsibinvest to complete the construction of an edge laminated board plant in Archangelsk, north western Russia.
Ron Freeman, First Vice President of the EBRD, said: "The EBRD is delighted to join with its financing partners in providing this financing to the Russian manufacturing sector. Increasingly, Russian companies like Zapsibinvest are demonstrating to lenders and investors their ability to produce quality products for Russian and export markets."
Vladimir Reznikov, General Director of Zapsibinvest, said: "Having approached several Russian and non Russian banks ourselves prior to working with the EBRD, we appreciate the EBRD's success in putting together the financing and the constructive approach that they took throughout the process."
Löschen GmbH, one of the largest suppliers of timber products to the German do-it-yourself store chains, will make a further loan of DM 1 million on a subordinated basis. Löschen and Zapsibinvest have been working together to supply the German market for the past three years; Löschen will serve as Zapsibinvest's foreign partner for marketing the edge laminated board internationally.
Edge laminated board is considered a solid wood product. It is comprised of several pieces of sawn wood, typically spruce and pine, glued edge-to-edge and then sanded to give the impression of a continuous piece of wood, and is used to make furniture.
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