EBRD to Lend €3 mln to Leading Polish PET Maker

30 Nov 2009 • by Natalie Aster

The EBRD is to lend €3 mln to one of Poland’s leading producers of Polyethylene Terephthalate (PET). The loan will help SK Eurochem to adjust to new market conditions. The EBRD loan will finance SK Eurochem’s working capital needs in a bid to provide longer-terms of payment required by Polish clients, as well as help the company diversify its sources of competitively-priced raw materials in order to ensure the continuity of production process.

SK Eurochem was exporting 60% of the 130,000 tpa of PET it produces. But in the wake of the financial crisis, the competition in the Polish PET segment saw a substantial decline, and SK Eurochem became the main producer of PET in the country. Responding to the supply gap on its local market, the company plans to expand the volume of PET sold in Poland, replacing current export sales. The EBRD loan will finance SK Eurochem’s working capital needed to provide longer-terms of payment required by Polish clients. In addition the EBRD funds will help the company diversify its sources of competitively-priced raw materials in order to ensure the continuity of production process. SK Eurochem is a JV between South Korea’s SK Chemical and Anwil, one of Poland’s leading producers of fertilisers.

Source: Plastemart

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