The European Bank for Reconstruction and Development (EBRD) is buying a minority stake in Ukrainian packaging producer Khask Group (Kharkiv).
"Direct investment of $6 million to support the expansion of the packaging producer… The bank's proceeds will be used for the expansion of Khask's production of self-adhesive tapes and high quality flexible plastic packaging materials," reads a press release of the EBRD.
According to the release, the investment will allow Khask to finance the acquisition of modern equipment to implement its expansion program.
The release says that following the food sector's recovery, the plastic packaging materials segment is expected to grow by 14% on average from 2010 to 2017 and on the installation of new production capacities Khask will be well positioned to meet this growing demand for high quality food packaging.
Khask, in particular, is planning to increase production of PVC film and waxed paper packaging for the Russian, the Kazakh and the Ukrainian markets.
"The project will also support Khask's strategy of maintaining its position as the largest CIS producer of self-adhesive tape. It is in line with the bank's strategy of supporting domestic producers, which will help substitute imports with cheaper and good quality locally-produced packaging materials," reads the release.
