Tenaris takes out 10m-euro EBRD credit for Donasid

The European Bank for Reconstruction and Development (EBRD) will grant a 10 million-euro credit to Donasid, owned by the Tenaris group, as partial funding for a project to modernise and increase the production capacity of the steel plant in Calarasi. The total cost of the project is estimated at 60 million euros and the production capacity of the plant will increase to 425,000 tonnes of steel by 2009, from 230,000 tonnes this year, the EBRD announced. Donasid’s output is 95% delivered to duct manufacturer Silcotub Zalau, also controlled by Tenaris, one of the leading duct manufacturers worldwide. The Zalau-based company produces non-welded low-carbon steel alloy pipes, which are used in the construction, petroleum and gas, energy, chemical and machinery building industry. This project will contribute to the development of stainless steel production in Romania and to turning a formerly state-controlled company into a viable entity, says the EBRD. The modernisation of the plant will also have a significant impact on the Calarasi area, affecting incomes of the population through direct and indirect employment. On the other hand, the application of European environmental norms by Donasid will be stipulated in the crediting agreement and will be monitored by the EBRD.