WASHINGTON, D.C., September 22, 1998 --
The International Finance Corporation is joining with the largest manufacturer
of paper and packaging materials in Hungary, Dunapack Paper and Packaging
Ltd., to invest in the expansion of a corrugated products plant in central
IFC will invest US$4 million in the US$12 million project for Dunapack
Rambox Prodimpex LLC. to expand capacity of its plant in Sfantu Gheorghe
in Romania’s Transylvania region and to consolidate two subsidiaries of
Dunapack int one new company. Capacity of corrugated paper products will
eventually rise to 35,000 tons per year in the second phase of the project.
IFC’s financing package includes an equity investment of US$2 million
and a loan of US$2 million for IFC’s own account. Dunapack provided a
further US$8 million of equity. Dunapack Paper and Packaging Materials
Ltd. was established in 1990 as a private company that is wholly owned
by the Austrian Prinzhorn Group.
The project is designed to catalyze further private sector involvement
in Romania, serving as an example of intraregional investment. IFC
is providing long-term financing that would not otherwise be readily available
for the project since commercial sources of financing are limited in Romania.
IFC, part of the World Bank Group, fosters growth in the developing world
and in emerging economies by financing private sector investments, mobilizing
capital in the international financial markets, and providing technical
assistance and advice to governments and businesses.