Bank of Moscow to Finance Construction of Lime Processing Plant
OREANDA-NEWS. September 26, 2014. The Bank of Moscow provides a credit in the form of project financing to TEREX Group of Companies for the establishment of lime production plant in Tula region (with the capacity of 200 thousand tons per year) on the basis of Centre-Izvestniak, LLC.
The total amount of investment to the project is almost 2 milliard roubles, the credit limit is 1 milliard roubles, credit term is 7 years.
TEREX Group is a major manufacturer of construction materials in Kaluga and Tula regions (brick, gravel, mineral powder), it is successfully works in the Central Federal District, having a strong position in Moscow region. The complex of enterprises of TEREX Group of Companies for the production of construction materials combines production, marketing and transportation units, allowing to carry out a full production cycle — starting from raw materials extraction in quarries, finished products manufacture and finishing by their delivery to customers.
The Borrower — Centre-Izvestniak, LLC — is a new division of TEREX Group of Companies in Tula region, acquired in 2012, and owning large deposits of high quality limestone. The company has a crushing and screening plant for the production of crushed stone, the raw material from which will be used for the production of mineral powder, as well as for the production of lime within the financed project. Lime production plant will be commissioned in two stages, the first one is scheduled to the end of 2015, the second one — to the end of 2016.
In Tula region TEREX Group of Companies plans to produce about 1.2 million tons of limestone rubble per year (at the moment — about 950 thousand tons, with the prospect of increasing the production up to 2 million tons), 300 thousand tons of mineral powder and 200 tons of lime (with the prospect of increasing up to 300 tons) per year. It is expected that the total amount of the Group’s investment to the production of construction materials in Tula region will be more than 3 milliard roubles, which will create more than 200 job positions and allow to achieve an annual turnover of more than 1 milliard roubles.
"This transaction demonstrates the team’s ability for effective implementation of the Bank's transactions of project financing for successful clients in certain sectors of the economics", — said Igor Dubonosov, the Senior Vice President of the Bank of Moscow.
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