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EBRD finances first private industrial project in Belarus
To support the modernisation plans of one of the largest joint ventures in Belarus, the European Bank for Reconstruction and Development (EBRD) has agreed to extend US$ 8.7 million (ECU 8.0 million) in financing to the Elizovo Glass Factory, a Belarussian-Canadian glass container company. The EBRD's financing package consists of a loan of US$ 7.7 million and an equity investment of US$ 1 million.
"As the first stand-alone private sector industrial project undertaken by the EBRD in Belarus, the financing will foster the development of the emerging private sector and will promote foreign direct investment. By setting out a private sector model of a successful business restructuring, the project will have a strong demonstration effect and should contribute to the acceleration of market reforms in Belarus," said George Krivicky, Director of the EBRD's Baltics/Belarus Team.
The project aims to establish a modern, efficient and environmentally sound manufacturing facility for glass containers in Belarus. The financing will ensure that the food and beverage industry in the country has a constant supply of quality glass containers, the shortage of which has restricted the development and profitability of the industry.
Elizovo Glass was established in December 1997 by Consumers Packaging Inc. (CPI), a Canadian public corporation listed on the Toronto and Montreal Stock Exchanges, Lada/OMC Holding S.A., a private Belarussian closed joint-stock company, and Oktyabr Glass, an existing glass container factory in Belarus.
CPI is the third-largest glass container manufacturing concern in North America. It is Canada's only glass container manufacturing company, with 85 per cent of the market share. CPI, with its affiliates, is also a producer of world-class glass container manufacturing machines and related equipment. It also has joint-venture projects in Mexico, Italy, Ukraine, Israel and China.
LOMC Group is involved in a number of businesses in both the industrial and retail areas. In addition to its interests in the automotive industry (through joint ventures with Ford Motor Company and MAN), LOMC also has controlling interests in two glass container factories in Belarus, including Oktyabr Glass.
The Belarussian authorities have also extended strong support for the project.
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