OREANDA-NEWS. November 23, 2010. The EBRD is continuing to support the Ukrainian packaging sector by extending a EUR29.8 million loan to Ukrplastic, a family owned producer of flexible plastic packaging in Ukraine and the CIS. Ukrplastic is planning to use the loan proceeds to improve its energy efficiency and environmental standards, invest in new technologies and restructure its balance sheet, reported the press-centre of EBRD.

Ukrplastic is a well established market player, which produces food packaging and supplies to major clients like Nestle, Kraft and Mars. The company’s latest investment programme will support its drive to remain competitive both in the domestic market and internationally.

The investment programme will finance the Company’s energy efficiency investments including introduction of a solvent recovery system and installation of the new lamination equipment essential for the production of specialty packaging, currently imported into Ukraine. A new combined heat and power (CHP) unit with a capacity of up to 5MW will provide a reliable electricity supply for Ukrplastic.

Energy efficiency investments, especially the installation of a CHP facility, and the introduction of Energy Efficiency Management Systems will set a new benchmark and have a strong demonstration effect in the Ukrainian packaging industry and other energy-intensive manufacturing sectors.

As a result of energy efficiency improvements, identified by the Bank’s energy audit, funded by the EU Neighbourhood Investment Facility, the project is expected increase energy savings of up to 30 per cent and result in Green House Gases emission savings of around 20,000 tonnes of CO2  per year.

Through its cooperation with the EBRD Ukrplastic will improve its corporate structure and governance and launch new international quality products, which are currently not available in Ukraine.

The European Bank for Reconstruction and Development is the largest financial investor in Ukraine. As of 1 November 2010, it had committed over EUR5.3 billion through 206 projects.