December 18 (SeeNews) - Moldova's Glass Container Company (GCC) said it has received a 17 million euro ($19.4 million) financing from the European Bank for Reconstruction and Development and local lender Mobiabanca - Groupe Societe Generale, for an upgrade of its production facilities.
The financing is supported by a guarantee and technical assistance programme funded by the European Union, GCC said in a press release on Monday.
Structured in two phases, the project will increase the output of GCC's furnace from 50,000 to 80,000 tons per year once fully completed.
Together with Glass Container Prim (GCP), GCC's sister-organization, total pull capacity will increase from the current 100,000 tons, to 160,000 tons per year, with the number of production sections increasing from 36 to 56.
The reconstruction will also support GCC's transition to a technology that will enable it to expand their segment capabilities to small format jars, large containers, light beer bottles, as well as tap high-growth market niches including mineral water and baby food, among others.
The upgrade is also expected to lead to significant energy and material savings for the company.
"This is truly a transformational project for GCC, which will enable us to significantly upgrade our capacity to meet growing customer demand, while also delivering high quality products and maximizing operational efficiency. The shortage of glass container capacity in Europe is evident. As consumers increasingly shift away from plastic packaging, the glass market has seen a robust growth over the last years, which is expected to continue in the mid to long term," GCC CEO Oleg Baban said.
GCC is a leading glass containers manufacturer in CEE, serving customers in Romania, Moldova, Italy, France, Hungary, Greece, Ukraine, Georgia and other CEE and Western European markets. The company has been traditionally focused on the wine, spirits and beer segments, counting over 100 customers and more than 200 container types in its portfolio.
GCC's largest shareholder is Western NIS Enterprise Fund, a $150 million U.S. government-backed fund.
($=0.8822 euro)