The European Bank for Reconstruction and Development (EBRD) could provide a loan of up to EUR 40 million to Kronospan UA LLC, a wood-based panel manufacturer (Novovolynsk, Volyn region) via Kronospan Holdings East Limited (Cyprus), part of Kronospan Group, to finance its capital expenditure.

The bank said on November 13 that the project will be discussed by the bank's board on December 16.

The project assumes the replacement of a multi-daylight press with a continuous particleboard press, and adaptation of the pre-production area for the increased production volume. Kronospan will also invest in a new bio-mass boiler and WESP filter at the site.

The total cost of the project is EUR 67 million, and EUR 27 million will be financed by Kronospan.

As reported, Kronospan UA raised a syndicated loan of EUR 60 million organized by the EBRD in November 2006.

Kronospan is the market leader in the wood-based panel sector. It manufactures wood-based panel products at over 40 sites in 28 countries. It currently employs over 14,000 people and has revenues in excess of EUR 4.5 billion a year.

The EBRD is the largest international financial investor in Ukraine. As of July 1, 2015, the bank had a total cumulative commitment of EUR 11 billion in 345 projects in the country.