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Private Slovak wood-processing company, Bucina Zvolen a.s., lands major EBRD financing package
Securing the largest private sector industrial financing from the European Bank for Reconstruction and Development (EBRD) in the Slovak Republic since 1995, wood-processing company, Bucina Zvolen a.s. (Bucina), signed a DEM 28.5 million (ECU 15.2 million) loan to modernise its production facilities, double capacity for particleboard, and upgrade the company's energy systems. The project will further aim to reduce Bucina's energy costs by more than 25 per cent and improve its environmental performance.
"Bucina is a model for Slovak industry," said Alain Pilloux, Director of the EBRD's team for the Czech Republic, Slovak Republic, Poland and the Baltics. "As a medium-sized company, transparently privatised and successfully restructured, Bucina is well-placed for long-term profitability. This is precisely the type of company which the EBRD wants to finance in the Slovak Republic. Moreover, the EBRD-Bucina partnership demonstrates our focus on developing the performance of Slovak industry. In the absence of long-term finance for medium-sized enterprises in the country, such partnerships will remain vitally important."
Located in the central Slovak town of Zvolen, a heavily forested region, Bucina is the country's leading producer of particleboard, plywood and other specialised wood products. Established in 1946, the company was privatised in two phases in 1992 and 1995, respectively, with the National Property Fund divesting its 49.3 per cent shareholding via a tender in 1995. Bucina employs more than 1,300 people and had 1997 sales of SKK 1.56 billion, as Bucina significantly improved productivity.
Peter Lispuch, Chairman of the Board of Bucina Zvolen a.s., said, "This is one of the most significant events in the 50-year history of Bucina. The EBRD's loan will strengthen Bucina's position in Slovak industry and the central European region. Most importantly, our actions are directly targeted at the economic integration of the Slovak Republic into the European Union, which is a priority for the Bucina company."
The EBRD's 8-year loan will reconstruct and improve Bucina's energy system by eliminating purchased steam and electricity. Forecasted energy savings total 28 per cent of current usage. In addition, the project will modernise and expand the company's particleboard production line. Particleboard capacity will double and the company will increase use of recycled woods. Enhanced energy efficiency and use of recycled materials will improve the company's environmental performance.
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