News Column

Europa-EIB boosts modernisation of glass industry in Poland

July 4, 2014



ENP Newswire - 04 July 2014

Release date- 03072014 - The European Investment Bank (EIB) is lending EUR 16.5 million to BA Glass Group for the upgrading and expansion of two container glass production facilities in Western Poland.

The EUR 16.5 million is the first tranche of the total approved financing of up to EUR 50 million for the project. This EIB support for the glass industry in Poland will considerably contribute to strengthening the economic attractiveness and competitiveness of the Wielkopolska and Opolskie regions.

The investments will result in a significant increase in the production capacity of the plants located in Sierakow and Jedlice. The new technology applied will enable the production of better quality, lighter glass containers, thus saving raw materials and energy in transportation. The modernisation process is expected to be completed by 2016.

The upgrade backed by the EIB loan will enhance the plants' competiveness and long-term sustainability. It will also professionally activate local society by creating substantial indirect employment and maintaining around 640 direct jobs.

As the EIB strongly promotes environmentally friendly projects, both plants are energy efficient and the investment programme will implement the latest technology for glass furnace heating by using natural gas with electrical boosting. Moreover, the upgrade will allow for substantial reduction of water consumption through increased treatment and recycling in each plant.

The Bank's loan is providing financial value added to BA Glass Group by making available long-term financial resources at a lower funding cost. This project is a continuation of the EIB's long-term successful cooperation with BA Glass Group, which operates in Portugal, Spain and Poland. Including the current operation, the Bank has made available three loans to the Group totalling some EUR 92 million to support investments in the modernisation of its industrial capacity.

Background information:

The EIB is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. In 2013, EIB financing in Poland amounted to EUR 5.7 billion.

Press contact:

Alicja Chytla, a.chytla@eib.org, tel.: +352-4379-88233

Website: http://www.eib.org/press - Press Office: +352 4379 21000 - press@eib.org


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Source: ENP Newswire


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