TheFINANCIL — IFC, a member of the World Bank Group, is providing a loan of up to 15 million euros to theAlutech Group, the largest private manufacturer of aluminum products in Belarus, to help strengthen and diversify its business and boost the country’s private sector growth.
IFC’s long-term loan will help Alutech roll over its short-term debt to strengthen its capital structure in a volatile economic environment, continue its geographical diversification, and increase exports, according to IFC.
“IFC has supported us through the years and at various stages of development,” said Alexei Zhukov, General Director of the Alutech Group. “The latest investment will help us continue with our plans to diversify our sales, open new markets and provide more high quality products to our consumers.”
Carsten Mueller, IFC Regional Industry Head of Manufacturing, Agribusiness and Services in Europe, Middle East and North Africa region, said: “Our investment in Alutech is part of our strategy in Belarus to support private manufacturers, encourage private sector development, and promote job creation. We hope our commitment to the company will also encourage other investors to invest in the country.”
The project will contribute to strengthening job security for Alutech’s 3,500 employees and will also indirectly support employment along the supply chain, as small and medium enterprises are key distributors of Alutech’s final products.
Alutech’s main markets are Belarus, Russia, and Ukraine. Over the past few years, the company has boosted its exports to European markets, with its share in Europe growing several folds in the last four years. The company is committed to continuing with its geographical diversification and has also launched sales to the Unites States, Latin America and Australia.
Alutech has been an IFC client since 2010. Its aluminum products are widely used in industrial, residential and commercial real estate development.
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