On Friday, Vinnytsya Oblast Deputy Governor Valeriy Koroviy said the European Bank for Reconstruction and Development (EBRD) is contemplating a €40 million loan to Poland-based Barlinek S.A. for construction of parquet and flooring accessories production facilities in Vinnytsya. He added, however, that EBRD has not yet announced the date of its board meeting to approve the final amount of the loan.
The Polish company’s web site cites a similar investment amount, PLN 140 million (over €34 million), but mentions equity financing and long-term credits as the sources of funds.
The new plant is expected to be put in operation in the fall of 2007. It will consist of a floorboard process line, a softwood sawmill, a drying room, a boiler room, and facilities for production of biofuel pellets. At a rated annual capacity of two million square meters of flooring, the plant is expected to become Ukraine’s largest floorboard maker.
This investment is launching the second stage of the company’s woodworking project in Vinnytsya. The first-stage construction, which started in July 2005, was complete in March 2006, when Barlinek Ukraina, subsidiary of Barlinek S.A., commissioned a €3 million hardwood sawmill for production of floorboard blanks. The sawmill’s annual capacity is 45,000 cubic meters, and until now, its entire output has been exported to Poland. Timber for the operation is supplied from Western Ukraine. In October 2005, the company concluded a 10 year contract with the State Forestry Committee of Ukraine for supply of €30 million worth of wood.
The enterprise currently employs 160 Ukrainians, who underwent half-a-year of special training in Poland. Completion of the second stage will add 400 new jobs.
According to Barlinek S.A. web site, the decision to locate its operation in Ukraine, and later one more in Russia, was driven by the “growing demand for laminated floor over our [Polish] eastern border.” Other factors considered include transportation costs and availability of high-quality timber in the region.
The new plant will be constructed on a 5.8 hectare land plot leased for 10 years. The first stage of the project was implemented on a 6.4 hectare plot bought for just above UAH 1.2 million ($0.24 million).
The woodworking facilities, which use the industry’s most advanced technologies, can be called environment-friendly. In the first place, the company abides by the "One for One Rule," meaning that one tree is planted per each pack of Barlinek floorboard sold. Moreover, the boiler installed at the sawmill burns production wastes, supplying heat not only to the facilities but also to part of the adjacent neighborhood.
Barlinek S.A. is Poland’s largest and the world’s fifth maker of natural wood flooring, according to the company’s web site. The enterprise exports its products to 26 countries worldwide, including the United States, Great Britain, France, Germany, and Scandinavian countries. In 2004, the company earned PLN 235 million (€58 million) at a net profit of PLN 26 million (€6.4 million). Respective targets for the year 2005 were PLN 309 million (€76 million) and PLN 33 million (€8.1 million).
Sources:
http://www.investor.net.ua/ru/news/info-4942.html
http://www.barlinek.com.pl/
http://www.33channel.vinnitsa.com/2006/06-17-13.php
http://www.derevo.info/news.php?x=story&i=1592
http://vinnytsya.osp-ua.info/idxnews-17980.html
