Belisce Expansion

completed

The project is to support an existing IFC client, Belisce d.d., in its corporate expansion and modernization program aimed at becoming a leading producer of packaging paper and materials in the Balkan region. Belisce is already a major player in its home market - Croatia and in the countries of former Yugoslavia. Most of the modernization of Belisce''s own facilities has already been completed with IFC financing during 1997-98. The proposed project of up to EUR46.5 million (US$40.8 million equivalent) will consist of the following components: (i) further modernizing Belisce''s internal facilities; (ii) acquiring and modernizing Valkarton, a Slovenian corrugated box producer with a subsidiary in FYR Macedonia; and (iii) restructuring of existing debt. IFC''s investment will help Belisce to: (i) show better results in both production and sales; (ii) decrease its sensitivity to downturns of the industry cycles due to diversification of its operations and markets; (iii) enhance its market, improve its distribution systems and increase sales of packaging papers and corrugated board packaging; (iv) improve its regional market position; and (v) balance its corporate debt in terms of maturity and match long-term investments with long-term financing.