The European Bank for Reconstruction and Development (EBRD) has granted €20m loan to Croatian packaging producer Aluflexpack Group (AFP Group) to fund the expansion of its flexible packaging product range and aluminium-based product ranges.
The funding will be provided to three Croatian flexible packaging producers consolidated in the AFP Group which include Aluflexpack Novi, Omial Novi and TOF.
EBRD first vice-president Phil Bennett said: “The EBRD’s support will strengthen the ongoing growth program of AFP Group, set standards in business conduct and allow for the introduction of new products.”
In 2012, all three packaging producers were acquired by Montana Tech Components, parent company of AFP Group, from Hypo Alpe Adria Bank.
The new funding is a part of a comprehensive modernization program, which was launched by Montana Tech Components in 2013.
AFP Group CEO Igor Arbanas said: “Our successful cooperation with the EBRD has helped develop AFP Group not only financially but also organizationally. Since 2013 the highly competent EBRD team has been a greatly appreciated and constructive partner.
“We are very happy about the further extension of our cooperation not only because it will help us serve our customers better, grow our business and further develop our organization but also because it is a great confirmation of the successful development of AFP Group since joining the knowledgeable, experienced and globally active Montana Tech Components Group.”
AFP Group currently provides flexible packaging for the confectionary, dairy, human food, pharmaceutical and pet food industries.
In addition to operating four production sites in Croatia, Aluflexpack has production and logistics sites in France, Poland and Switzerland.
EBRD has so far invested around €3.5bn in 186 projects in Croatia.
