March 18 (SeeNews) - Romanian state-owned savings bank CEC said on Monday it is lending 48 million euro ($54 million) to industrial group MG TEC Industry for the construction of a new production unit.
The new plant will produce absorbent and sanitary household products from paper and cellulose, CEC said in a press release.
MG TEC will use the funds to build manufacturing halls and buy machines, cars and laboratory equipment.
The total value of the project is 80 million euro, out of which 32 million euro will be provided by the finance ministry under the state aid scheme.
The project is to be implemented in Dej municipality , Cluj county, and is one of the most important projects developed by Romanian entrepreneurs in the area, CEC Bank said.
"We strongly believe in our domestic production capacity and we are sure that this project will become a success story not only at regional level, but also nationally," CEC Bank management committee chairman, Laurentiu Mitrache, said.
MG-TEC Industry is a Romanian group of companies established in 1993 by businessman Ioan Tecar with activities in the field of metallurgical products, insulating and plastering products, construction and construction materials, PVC and aluminium windows and doors, service and car parts as well as insurance.The group includes Samus Tec, Metalicplas Activ, Termo Tec, Izo Tec, Expo Autotec and Atlantic Broker.
Founded in 1864 as Casa de Economii si Consemnatiuni (Deposits and Consignments House), CEC was reorganised in 1996 as a joint stock company with the finance ministry as its sole shareholder and was re-branded as CEC Bank in 2008.
($= 0.8836 euro)
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