The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to EUR 13.8 million in the form of two allocated tranches to PJSC Kokhavynska Paper Mill (Lviv region) to finance the construction of a new production and warehouse building.
According to a report on the EBRD website, the project involves the construction of a plant for the production of paper goods based on cellulose.
“The project assumes the construction of a facility for the production of pulp-based tissue products to meet growing demand for high quality tissue products. It will enable the company to enter the higher quality retail tissue segment, double its tissue production capacity and improve operating efficiency. The CAPEX for capacity expansion comprises tissue and converting machines, the construction of an industrial production and storage workshop,” the bank said on its website.
The total cost of the project is EUR28.5 million.
The shareholders of the plant approved raising a EBRD loan in the amount of up to EUR17 million to finance the construction of a new production facility at a meeting on November 10.
According to the decision, the property of the factory, the market value of which exceeds 50% of the value of the assets (according to the latest financial statements), will be pledged on the loan.
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