Holzindustrie, 90m-euro loans from two Austrian banks

Austrian group Holzindustrie Schweighofer, one of the main players in the wood processing industry, has taken out a 90 million-euro loan in order to sustain investments it is carrying out in Radauti. “The loan’s value is 90 million euros, and has been granted in equal shares by Investkredit and Austria Creditanstalt,” said Vlad Cirjan, a partner with the law firm Gilescu&Partenerii, which advised Holzindustrie. The Austrian company plans to invest 105 million euros in Radauti, in a timber plant, which will add to the other facilities held by the company in Sebes, Alba county. “I think we will start production in Radauti in the second quarter of the year,” said Cosmin Capra, manager of Holzindustrie Schweighofer Romania. Investments in Radauti are also directed towards building a cogeneration plant, with a capacity of 9 MW. The Austrian company has so far invested over 170 million euros on the local market, with an additional 130 million-euro investment planned for the 2008-2010 period, with 50-60% covered through bank loans.