Kronospan increases credit lines to 16m euros

According to an announcement published by the company in the Official Gazette, shareholders of Austrian group Kronospan have increased the credit facilities taken out by the Sebes-based plant of the group from HVB Tiriac Bank. Kronospan Sebes shareholders agreed on increasing the borrowed sum from 3 million euros to 16 million euros in order to meet the company’s needs, “meaning a credit facility for the Debtor’s working capital, the issuing of a guarantee letter, the issuing of a letter of credit, and of transactions made in foreign currencies.” The Austrian group holds two plants in Alba county, Kronospan Sebes, and Kronospan Sepal respectively. In 2005, the two Kronospan plants posted a combined 140.3 million-euro turnover and gross losses of about half a million euros. In 2004, Kronospan was involved in an approximately 200 million-euro transaction, in the wake of which it acquired the two Sebes-based plants, owned by its rival, Gruppo Fratti. In Romania, Kronospan’s main business is conducted through these two wood processing plants, Kronospan Sebes and Kronospan Sepal.