BELGRADE (Serbia), November 18 (SeeNews) – The European Bank for Reconstruction and Development (EBRD) said on Wednesday it is making an equity investment of up to 7.0 million euro ($10.5 million) in Serbian furniture maker Forma Ideale in support of its further growth and export expansion.
“With the EBRD’s support, Forma Ideale will build its first modern logistics centre close to its production facility in Kragujevac, in central Serbia,” EBRD said in a statement posted on its website.
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“The new warehouse will enable the company to consolidate its logistics operations, reduce delivery times and improve overall production efficiency,” the statement said.
Forma Ideale exports to neigbouring Bosnia and Herzegovina, Croatia, Montenegro, Macedonia and Romania.
EBRD funds will also be used to strengthen Forma Ideale’s balance sheet. The project will help Forma Ideale pursue its strategy and enter new export markets in EU and eastern Europe, the statement said.
Forma Ideale, which employs close to 1,100 people, cut its 2008 net profit to 111 million dinars ($1.8 million/1.2 million euro) from 489 million dinars in 2007, data from the country’s business registry showed. The company raised its 2008 consolidated operating revenue to 4.5 billion dinars from 3.8 billion dinars a year earlier.
Since the beginning of its operations in Serbia in 2001, the EBRD has committed more than 1.7 billion euro in various projects. EBRD funds attracted additional investment worth 2.5 billion euro in the Serbian economy, the statement added.
(1 euro=94.6606 Serbian dinars)