EBRD grants Aluflexpack a $22mln loan to finance aluminium packaging & printing technology

Aluminium flexible packaging solutions manufacturer Aluflexpack has been granted a loan of €20 million (USD 22 million) by the European Bank for Reconstruction and Development to finance technology upgrades at its Croatian firm.

Aluflexpack specializes in manufacturing containers, closures and lids, and other aluminium products. Technology upgradation which forms an integral part of Aluflexpack’s recent strategic expansion plans would enable the company to develop new products and increase production capacity significantly.

Aluflexpack approached EBRD for the loan based on ‘demonstration of successful restricting and setting standards of corporate governance and business conduct.’

EBRD, in response, outlined the following conditions:

• Environment and Social (E&S) issues associated with production procedure of aluminium packaging are site-specific
• E&S issues, if any, should be proactively identified and addressed with immediate effect through implementation of an E&S Action Plan (ESAP).

The ESDD (Environmental and Social Due Diligence) of the original AFP project was duly carried out in 2014 following which an ESAP was developed to mitigate the identified E&S issues.

The energy audit under the Croatian Government for the project is due in 2017. The new energy management system would e introduced once the results of the audit are in hands. Other regulatory assessments are being carried out to expedite installation work at the site.

Aluflexpack, an ISO 9001 and ISO 14001company, and AFP are jointly owned by Montana Tech Components.