You have 10 free articles left this month. Get your freeBasic subscription now and gain instant access to more.

EBRD backs Draexlmaier with 40 mln euro loan for ops in SEE, Tunisia

EBRD backs Draexlmaier with 40 mln euro loan for ops in SEE, Tunisia One of Draexlmaier's plants in Brasov, central Romania (Author: Draexlmaier) License: all rights reserved.

BUCHAREST, (Romania), June 8 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said on Wednesday it has lent 40 million euro ($45.4 million) to German automotive components maker Draexlmaier for financing the company's operations in Southeastern Europe (SEE) and Tunisia.

The loan will enable Draexlmaier to build up production capacity in Romania, Serbia, Macedonia and Tunisia and to finance the construction and putting into operation of a new plant in Moldova, the EBRD said in a statement.

The EBRD has subscribed to the a 40 million euro debut hybrid bond issued by Draexlmaier Group, it said in a press release. The total cost of the expansion project will be 90 million euro, EBRD data showed.

In Romania, the German group entered in 1993 and currently employs 15,000 people. It owns production units in Satu Mare, Pitesti, Timisoara, Hunedoara and Brașov, where it operates two plants.

In Moldova, Draexlmaier owns two auto cable systems plants in the northern town of Balti, where some 3,000 employees work. The first one was built in 2009, and the second one opened in 2011 following a 30 million euro investment. In February, the administrator of Balti free economic zone in Moldova said that Draexlmaier will build a 31 million euro plant here, employing some 2,500.

In Serbia, the group has been present since 2007 and operates two plants, in Zrenjanin and Kragujevac, while in Macedonia it operates a factory in Kavadarci since 2012.

Draexlmaier, founded in 1958, currently has more than 60 factories in 20 countries and a staff of 55,000.

($= 0.8794 euro)