May 15 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said it is extending a 5.0 million euro ($5.6 million) loan to Croatian wood elements and panels producer Lipovljani Lignum for the construction of a pellet plant.
"The financing will fund investments into new technology that will lead to resource efficiency," the EBRD said in a statement on Tuesday.
The new pellet plant will be built at the facilities of Drvna Industrija Novoselec (DIN), a subsidiary of Lipovljani Lignum.
The total cost of the project is 10 million euro. It will be financed 50/50 by the EBRD and its Enterprise Expansion Fund (ENEF). The latter was created in 2016 to provide financing to established SMEs with high growth potential.
Lipovljani Lignum is a subsidiary of Italian hardwood processor Florian Group, which is also present in France and Hungary.
($ = 0.8919 euro)