Summary of Proposed Investment
Project Number
10542
Company Name
KRONOSPAN BULGARIA EOOD
Date SPI Disclosed
Nov 8, 2000
Country
Bulgaria
Industry
Agribusiness and Forestry
Projected Board Date
Dec 12, 2000
Status
Completed
Sector
Wood Panels and Engineered Wood Products
Department
Gbl Ind, Manufact, Agribus & Services
Environmental Category
B - Limited
Previous Events
Approved : Feb 8, 2001
Signed : Feb 9, 2001
Invested : Mar 15, 2001
Project Description
The project is to set up an Oriented Strand Board (OSB) line on existing premises at Bourgas, which would substitute a previously planned particleboard line and would further upgrade the existing facilities.
The project will double current production capacity, and further increase melamine-facing capacity. The added new capacity will achieve economies of scale, which are critical for the industry. The project is expected to boost margins, enhance the company''s competitive position in Southeastern Europe and provide strategic diversification. In addition, the project will contribute to the modernization of the Bulgarian wood panel industry, which is currently characterized by inefficient, low-quality operations and will have a potential strong impact on the development of the industry in the country.
The project will double current production capacity, and further increase melamine-facing capacity. The added new capacity will achieve economies of scale, which are critical for the industry. The project is expected to boost margins, enhance the company''s competitive position in Southeastern Europe and provide strategic diversification. In addition, the project will contribute to the modernization of the Bulgarian wood panel industry, which is currently characterized by inefficient, low-quality operations and will have a potential strong impact on the development of the industry in the country.
IFC’s role in the proposed project is three-fold: (i) increase confidence in and support for the Government’s privatization efforts; (ii) act as a catalyst for foreign investment and private sector participation in Bulgaria; and (iii) help the Sponsors gain access to long-term financing.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mr. Kris Nenov, Managing Director, Kronospan Bulgaria EOOD, Severozapadna Promishlena Zona, 8000 Bourgas, Bulgaria.
phone: +359 56 802 029, fax: +359 56 801 225
phone: +359 56 802 029, fax: +359 56 801 225