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IFC INVESTS IN MODERNIZATION OF MINERAL WOOL PLANT IN POLAND


Brigid Janssen
Phone: (202) 458-4698
Fax: (202) 974-4384
E-mail: bjanssen@ifc.org


WASHINGTON, D.C., April 30, 1999 — The International Finance Corporation will lend US$6.9 million to Partek Paroc Polska Sp. z o.o. to modernize its mineral wool plant in Trzemeszno in central Poland.
Partek Paroc Polska manufactures mineral wool insulation products for use in construction and technical applications. The company was formed by Partek Insulation AB of Sweden, a leading European mineral wool producer, which acquired the assets of a state-owned company. Partek Paroc Polska's existing plant is being modernized and a new up-to-date production line will allow a broader product range, higher quality, and significant environmental improvements. This phase of the modernization will be completed next year.
IFC had made an earlier equity investment of US$1.9 million in Partek Paroc Polska. IFC is financing this project along with Nordic Investment Bank (NIB), Finnish Fund for Industrial Cooperation Ltd. (FINNFUND), and Nordic Environment Finance Corporation AB (NEFCO). FINNFUND and NEFCO have invested equity alongside Partek Insulation and IFC, and will also provide senior loans. NIB will provide loan financing.
IFC has been investing in Poland since 1988 and has approved equity and loan investments amounting to $556 million equivalent in equity and loans in 30 projects in various sectors, including manufacturing, services and banking.
IFC, member of the World Bank Group, fosters economic growth in the developing world by financing private sector investments, mobilizing capital in the international financial markets, and providing technical assistance and advice to governments and businesses.