Croatia, Zagreb: KONČAR Group has signed a $370 M (€370 M) project financing agreement with the European Bank for Reconstruction and Development, the International Finance Corporation, Privredna banka Zagreb and Zagrebačka banka.
Together with $57 M (€50 M) of KONČAR’s own funds, the package will finance a $370 M (€370 M) investment project covering new production facilities, equipment purchases and increased manufacturing capacity for critical power equipment and infrastructure.
EBRD and IFC will each provide $138 M (€120 M), while PBZ and ZABA will contribute $46 M (€40 M) each.
“The confidence shown by international development institutions and Croatia’s leading banks is a strong confirmation of KONČAR’s position as an industrial and technological partner, as well as its increasingly important role in Europe’s energy transition,” said Gordan Kolak, President of the Management Board of KONČAR.
The projects form part of the largest investment cycle in KONČAR Group’s history. The company plans to invest $634 M (€550 M) over the next three years in expanding and modernising manufacturing capacity and developing its technological capabilities.
Including investments in power transformer production with Siemens Energy, KONČAR’s total planned investments exceed $920 M (€800 M).
Miljan Ždrale, EBRD Regional Director for Central Europe, said: “This investment marks the beginning of a strategic partnership and reflects EBRD’s commitment to supporting the green transition, strengthening competitiveness and modernizing electricity networks across Europe, while also investing in skills development and inclusive employment”.
“This investment strengthens Croatia’s industrial competitiveness by supporting innovation, expanding advanced manufacturing, and creating high-quality jobs,” said Ines Rocha, IFC Division Director for Europe.
The investments respond to rising demand for transformers, switchgear and other grid equipment, as Europe works to renew its electricity networks, strengthen industrial capacity and accelerate the energy transition.
Source: KONČAR
