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EBRD invests in Polish industrial fasteners manufacturer
As part of its strategy of providing support for Poland's Mass Privatisation Programme (MPP), the European Bank for Reconstruction and Development (EBRD) is investing US$ 4 million (ECU 3.1 million) in Fabryka Srub "SRUBENA" S.A. w Zywcu (Srubena), Poland's leading manufacturer of industrial fasteners. Srubena's main shareholder, the National Investment Fund (NIF) Octava S.A., and other NIFs will also invest US$ 4 million in the company.
"The successful closing of this transaction again shows the EBRD's ability to assist NIFs and the MPP in our role as a long-term investor," commented Alain Pilloux, Director of the EBRD's Poland Team. "This financing, undertaken with NIF Octava, will enable Srubena to improve its manufacturing facilities, reinforce its corporate governance and strengthen its competitive position locally and internationally. It is the second time the EBRD has supported the MPP through a stand-alone equity investment."
Martin Miszerak, Commercial Representative of the Management Board of NIF Octava and the Chief Executive Officer of the NIF's portfolio management company, KP Konsorcjum Sp.z.o.o., added: "Having the EBRD as a stable shareholder will enhance Srubena's international standing and assist the implementation of its investment programme. This joint investment will also send a welcome signal to potential investors in other MPP companies."
Bogumil Banas, Managing Director of Srubena S.A., said: "This additional capital will allow Srubena not only to strengthen its balance sheet but also to realise a modernisation programme to improve the product mix and better satisfy our customers' demands."
Proceeds of the EBRD, NIF Octava and other NIF equity investment will be used to finance Srubena's capital expenditure programme, which includes upgrading existing production facilities, streamlining the production process and purchasing specialised equipment to focus on high-quality/high-margin products. The proceeds will also enable the company to improve its environmental performance, increase operational efficiency, improve financial management and marketing and, ultimately, increase sales and profitability.
Established in 1832, Srubena is situated in Zywiec, south-east Poland. It is the country's largest manufacturer of threaded fasteners, such as bolts, nuts, screws, nails, rivets and railway fixtures. In 1995 it had a turnover of approximately US$ 40 million and employed around 1,300 people. Exports accounted for 50 per cent of sales.
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