EBRD helps Bulgarian metals processor compete on global market

MachinesNewsSouth-East European INDUSTRIAL Мarket - issue 2/2013

The EBRD is helping Bulgarian metal-processing company Sofia Med sharpen its competitive edge by investing €40 million in production and energy efficiency improvements and long-term working capital financing.
Sofia Med is part of Viohalco Group, one of the biggest companies in Greece and one of the dominant metals processors in Europe. Sofia Med is a leading copper, titanium zinc and brass processor and its plant – located on the outskirts of Sofia – is an important contributor to the Bulgarian economy. Sofia Med uses raw materials sourced from within Bulgaria, including copper from Pirdop and zinc from Plovdiv, and almost 83 per cent of the company’s production is exported to western and eastern Europe.
The EBRD funding package consists of a long-term loan worth up to €40 million. The transaction will provide Sofia Med with long-term committed working capital and with the necessary funds to finalise key investments. These will enable Sofia Med to compete more effectively on the global market and meet the increasing demand for its products.
As part of the EBRD funding package, €10 million will go towards investments in energy efficiency improvements that will help the company to achieve best international practice and towards investments in producing higher value-added goods. Another €30 million will be used for long-term committed working capital dedicated to financing the company’s future growth.