Mebelain and the EBRD signed a respective contract on Thursday, SBA said in a press release. The terms of the contract have not been disclosed.
Ernesta Dapkienė, SBA public relations manager, told BNS that the loan was the first one ever to be granted by the EBRD to an SBA company.
“By building a plant in Belarus we seek to further consolidate the positions of SBA in Eastern markets where we see strong potential for development amid growth in consumers’ purchasing power. Belarus, which has solid resources of raw materials and old traditions of furniture making, is part of the Customs Union of Russia, Belarus and Kazakhstan, which will provide better opportunities for Mebelain to sell its products in the CIS countries,” the press release quoted Ričardas Kiaurakis, CEO of SBA Baldų Kompanija (SBA Furniture Company), as saying.
SBA estimates that investments in the plant will amount to some 14 million euros. Mebelain will produce pieces of furniture, including tables, shelves, bedroom and living-room furniture, covered with natural veneer.
Mebelain should start operations in September.
SBA concern also owns six furniture manufacturing companies in Lithuania and Russia, including Visagino Linija, Klaipėdos Baldai, Šilutes Baldai, Kauno Baldai and Germanika in Lithuania, and Novo Mebel in Russia. The main areas of SBA's operations currently include furniture and ligthing fixture manufacturing, retail trade in furniture and clothing.
Businessman Arūnas Martinkevičius owns 97 percent of SBA concern.
