Partnership financing found for investors
Priorbank and the International Finance Corporation allocate 45m Euro loan for Alutech Group to build new plants in Belarus
By Vitaly Mikhalev
The financing of the company will occur in two stages: Priorbank will provide 20m Euros, with another 25m Euros given from the IFC’s own funds. The Director General of the Alutech Group, Alexey Zhukov, tells us, “This is the second joint project of the Alutech Group and the IFC. Over the last five years, with support from IFC funding, we’ve successfully completed construction of one of our enterprises. We’re continuing to expand production capacity by building a second line of the extrusion plant and plan to launch a new enterprise making gates. Total investment is likely to reach about 90m Euros, including our own funds.”
The Belarusian company makes aluminium profile systems, roller shutters and gates, which are widely used in the construction industry, for residential and commercial properties. About 85 percent of its goods are exported, with sales to 37 countries.
One of the plants extended by the Alutech Group is AluminTechno, which claims to be the largest extrusion company in the CIS. Its launching of a second line brings its total production capacity to 45-48 tonnes annually (almost doubling its volumes). The second company benefitting from investment is to make components for gates, as well as finished products. Covering over nine hectares, the new 50,000 square metre factory is being built with aluminium rods made by Alutech.
Priorbank Board member Vadim Matyushkin notes, “The decision of Priorbank to help fund this major project is a bright example of continued support of innovative Belarusian enterprises with significant export potential. The bank is gradually implementing a strategy to increase the flow of foreign investments into the Belarusian economy.”
The Head of the IFC in Belarus, Max Yacub, adds, “Our strategy in Belarus is focused on helping private sector development, improving its competitiveness. The new project with Alutech Group will promote further technological upgrading of enterprises, while raising the level of transparency. We also hope that our co-operation with Alutech will set an example, attracting more investments into Belarusian companies using advanced technologies.”
The Deputy Chairman of the National Bank of Belarus, Sergei Dubkov, notes that enterprises earning revenue are the backbone of any stable economy or financial system. Alutech is setting a good example: creating new jobs and producing new goods, as well as attracting investments into the country. The greater number of such enterprises, the more the Belarusian economy will benefit.
Belarus joined forces with the International Finance Corporation in 1992. Currently, the IFC is focusing its efforts on improving the business environment and the investment climate of Belarus, while enhancing the competitiveness of the private sector. The IFC has already invested nearly $340m in various sectors of the Belarusian economy. Alutech Group is a supply-sale holding, which includes six manufacturing plants and more than 20 sales companies in Russia, Belarus, Ukraine and the Czech Republic. It is a leading manufacturer of aluminium profile systems for gates in Eastern Europe, as well as the CIS roller market leader.
Priorbank is a subsidiary of Raiffeisen CIS Region Holding GmbH (87.74 percent of shares) and a member of one of the largest private banking groups in Austria and Central and Eastern Europe. It is one of five backbone financial institutions in Belarus.