The FINANCIAL — In a new boost to Romania’s aerospace industry, the European Bank for Reconstruction and Development (EBRD) is providing a €25 million loan to Universal Alloy Corporation Europe (UACE), which manufactures aluminium parts for aircraft.
Founded in 2008 as a subsidiary of the Swiss-Austrian Montana Tech Components group, UACE supplies components to leading aircraft manufacturers such as Airbus, Boeing, Bombardier and Premium AEROTEC.
The company is now expanding production in response to increased demand from these manufacturers, who in their turn are seeking to support worldwide growth in traffic with larger numbers of commercial aircraft, according to EBRD.
The EBRD’s loan will enable UACE to increase capacity across all activities and will help introduce innovative technologies such as full recycling of metal chips. The company will also continue training local staff, bringing the latest skills and know-how to Romania.
This is the second round of EBRD financing for the Maramures-based company, following a loan in the same amount that the Bank extended in 2012.
Matteo Patrone, EBRD Director, Regional Head of Romania and Bulgaria, said: “UACE’s success proves that Romania can become a true hub for manufacturing, able to attract foreign investors to its qualified workforce. The EBRD is pleased to play a role in developing Romania’s aerospace industry as the country moves towards a more sophisticated manufacturing sector.”
Dr Jon Kevin Loebbaka, President of UACE, said: “The EBRD has been a valued partner in our facility and expansion plans in Romania. UACE has been successful in the aerospace sector in Romania as evidenced by Airbus’s Best Performer Award for top-level industrial performance in 2015. This is a credit to the quality and dedication of UACE’s workforce in Romania. That will continue to support our ongoing expansion plans and further our leadership within the aerospace sector.”
The investment is part of the EBRD’s efforts to enhance the competitiveness of Romania’s private sector and drive job-generating foreign direct investment in the country.
The EBRD is a leading institutional investor in Romania. It focuses on promoting stability and expanding products in the financial sector, strengthening infrastructure through improved efficiency and greater private sector involvement, as well as on restructuring the power sector and increasing energy efficiency and sustainability.
The Bank has invested over €7 billion in the country to date and has also mobilised more than €14 billion from other sources of financing.