Kronospan finalises 60m-euro investment

Austria company Kronospan, which last year bought two factories for furniture materials in Sebes from Italy”s Gruppo Frati, is to complete a 60 million euro investment in boosting production capacity this year. “In line with the development plan of the two factories and the investment commitments undertaken by the group with the international financial institutions that made the takeover of the factories in Romania possible, the increase in production capacity will be carried out in two stages, between 2004 and 2005, and cost a total of 60 million euros. The investment will be completed by the end of this year,” said Christian Muller, general manager of the Austrian company. The company gave no details as to the value of the investment so far. The transaction last summer, which saw Kronospan take over the two factories belonging to Gruppo Frati, was worth 250 million euros and was completed with the help of the European Bank for Reconstruction and Development (EBRD). ZF