European top bank lends loan for Moldovan harness factory
The European Bank for Reconstruction and Development (EBRD) will co-finance the expansion plans of the Balti-based Austrian harness manufacturer Gebauer & Griller Kabelwerk GmbH with a loan of 5 million euros.
The total cost of the project is estimated at 18 million euros, according to a press release by the EBRD. The plant will be located in the Balti free economic zone, nearby the most important customers. As a result, the company will benefit from lower transportation and production costs and will be able to provide its output to customers using the just in time (JIT) strategy.
"The fact that EBRD supports our project in Moldova is like receiving a distinction. This support reinforces our strategic decision of following the most important customers, in order to quickly and flexibly provide them with our monofilament wires", said CEO and Partner of Gebauer & Griller Friederike Jacquelin. He added that the company he represented also saw a significant potential for economic growth in this region and wanted to be a part of this growth.
The financing of the plan on the extension of Gebauer & Griller company in Moldova, so that it obtains a platform on the Eastern European market, is part of EBRD’s effort to support the network of automotive sector suppliers in countries in which the bank invests.
"We are very proud of this investment; firstly, because this is our first investment in the automotive sector of Moldova. This will help us bring to Moldova the know-how, innovations and to boost the manufacturing industry, which is now a limited sector in Moldova", said EBRD Director for Caucasus, Moldova and Belarus Bruno Balvanera. This investment, according to Balvanera, "helps the country attract the so much needed foreign investments, thus creating jobs and encouraging competition. In addition, the investment is directed outside Chisinau and will stimulate economic growth in less developed regions. "
Founded in 1940, the Gebauer & Griller Kabelwerk GmbH Company produces wiring for the automotive industry, as well as for other industries. It operates in Austria, the Czech Republic, India, Mexico, Slovakia and the United States, and now also in Moldova, where it has recently launched the production process and will reach full capacity by September 2014.
The EBRD is the largest investor in Moldova. Since the beginning of its activity in 1994, the bank has signed over 100 investment projects in Moldova in the fields of energy, transport, agribusiness, industry and banking, amounting to over 900 million euros.
Adapted from Moldpres
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