The two financial institutions have equal participation in the project

An agreement for an investment loan in the amount of EUR 95 million was officially signed today in Plovdiv by KCM, the European Bank for Reconstruction and Development (EBRD) and UniCredit Bulbank. The term of the loan is 11 years, with a 2-year grace period. The two financing institutions – UniCredit Bulbank and EBRD – have equal participation in the project, i.e. providing EUR 47.5 million each.

The agreement will ensure funding for the project „Technical renovation and expansion of the production capacities at KCM S.A.". The purpose of the project is increasing productivity, production of non-ferrous in line with the European norms and standards for environment protection and for ensuring safe and healthy working environment.

„We are happy that thanks to the two most serious financial institutions – EBRD and UniCredit Bulbank – we managed to get funding in order to implement our plans although in recent years the environment has not been quite favourable”, said Nicola Dobrev, Chief Executive Officer of KCM 2000, at the signing.

„Namely entrepreneurship and good projects will help us out of the crisis”, said the Chief Executive Officer of UniCredit Bulbank, Mr. Levon Hampartzoumian. He pointed out that without overestimating the role of the financing institutions, the banks are ready to facilitate the success of the business.

“It is a pleasure for EBRD to provide support to such a significant player in the metallurgy sector in the region of South East Europe with regard to the plans of the company to reduce the greenhouse gas emissions and in this way to bring up the ecological standards, which it abides by”, said Daniel Berg, Head of EBRD for Bulgaria.

The agreement was officially signed by Daniel Berg – Head of EBRD for Bulgaria, Levon Hampartzoumian - Chief Executive Officer of UniCredit Bulbank, Nicola Dobrev - Chief Executive Officer of KCM 2000 S.A. and Stoyan Pehlivanov – Executive Director of KCM.

The signing ceremony was attended by MPs from the Plovdiv region, the regional governor of Plovdiv Mr. Ivan Totev and the mayor of Plovdiv Mr. Slavcho Atanasov.

About the project

The project „Technical renovation and expansion of the production capacities at KCM S.A." will be implemented without stopping the existing production and a big part of the project will be fulfilled on new production sites on the territory of the company. An advantage of the project solutions is the reduced energy consumption in the production of lead up to 2 times, and in the production of zinc – by 30 %.

At the time of rising deficit of natural resources, the leading producers of non-ferrous metals focus on constant increase in the production of metal and scrap metal. Recycling is an integral part of the sustainable devolvement strategy of KCM. Completing the technical renovation, the production of metal and scrap metal will reach 25 % of the total lead production and 30 % of the total zinc production.

From ecological perspective, the project „Technical renovation and expansion of the production capacities at KCM S.A." is aimed at reducing greenhouse gas emissions; reducing dust emissions and harmful substances emissions and reducing generated waste.

The technological renovation and expansion of the production capacities at KCM S.A. will be carried out within a period of 36 months starting in September 2010. Around 250 experts, construction workers and fitters will be directly involved in the construction and assembly works. It is expected also that the number of the employed workers in the Bulgarian companies – subcontractors will grow indirectly.

The implementation of the project „Technical renovation and expansion of the production capacities at KCM S.A." is of vital importance for the sustainable development of one of the largest Bulgarian companies and for keeping its excellent market positions on the international level.

For information:

KCM 2000, PR and Advertising, Mara Rousinova, 0889 236 960, nbsb/spvtjopwbAldn/ch

UniCredit Bulbank, Identity and Communications Department

Viktoria Blajeva, Tel. 02/9264 993, wjlj/ebwjepwbAvojdsfejuhspvq/ch

Ekaterina Ancheva: Tel. 02/9264 963, flbufsjob/bodifwbAvojdsfejuhspvq/ch