WASHINGTON, D.C., September 22, 1998 -- The International Finance Corporation is joining with the largest manufacturer of paper and packaging materials in Hungary, Dunapack Paper and Packaging Ltd., to invest in the expansion of a corrugated products plant in central Romania.
IFC will invest US$4 million in the US$12 million project for Dunapack Rambox Prodimpex LLC. to expand capacity of its plant in Sfantu Gheorghe in Romania’s Transylvania region and to consolidate two subsidiaries of Dunapack int one new company. Capacity of corrugated paper products will eventually rise to 35,000 tons per year in the second phase of the project.
IFC’s financing package includes an equity investment of US$2 million and a loan of US$2 million for IFC’s own account. Dunapack provided a further US$8 million of equity. Dunapack Paper and Packaging Materials Ltd. was established in 1990 as a private company that is wholly owned by the Austrian Prinzhorn Group.
The project is designed to catalyze further private sector involvement in Romania, serving as an example of intraregional investment. IFC is providing long-term financing that would not otherwise be readily available for the project since commercial sources of financing are limited in Romania.
IFC, part of the World Bank Group, fosters growth in the developing world and in emerging economies by financing private sector investments, mobilizing capital in the international financial markets, and providing technical assistance and advice to governments and businesses.
