Kurum inks loan deal for modernization of Albanian plant

Thursday, 19 June 2008 16:26:48 (GMT+3)   |  
       

On June 18, Turkish steel producer Kurum Holding signed a €20 million loan agreement with the Black Sea Trade and Development Bank (BSTDB) to finance its Albania-based facility in Elbasan, called Kurum International, with a three-year working capital for modernization and renovation works.

During the modernization works, Kurum International, also known as Elbasan Steelworks, plans to update its existing finished steel rolling production capacity, including rebar, structural steel, wire rod and mesh wire, which will up its existing annual steel rolling capacity to 600,000 mt by the end of the current year. Kurum International plans to sell of its finished steel production to the Albanian domestic market, while the other half will be exported to neighboring states, such as Kosovo, Macedonia, Serbia and others.

In addition, Kurum International plans to invest in infrastructure, such as the improvement of its port facility at the Port of Durres, to increase port handling capacity, and also the extension of the railway which connects the port to the plant. These investments will allow Kurum International not only to increase its port handling capacity, but also to be more efficient in cutting its transportation costs.

Furthermore, Kurum International also intends to implement an investment project in green energy using Albania's hydro resources, in collaboration with the Albanian government. The scope of this project includes the installation of a new 60 megawatt power generation plant which will fully satisfy Kurum International's needs in electricity.


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