According to the information produced by the EBRD at the 1st Economic Forum of the Central European Initiative, Slovakia ranks 5th in the EBRD activity in CEE. One of the recent draft projects is a joint venture with Oravske ferozliantinarske zavody (Orava iron metallurgy plant, OFZ) in Istebne.

The project plans a joint venture with EBRD as an investor and shareholder with a financial deposit and the OFZ investing non-financial capital of production equipment and know how. The business plan shall expand the production of filled profiles in Istebne, open 130 new jobs and enhance competitiveness of the company on foreign markets. The production capacity of the joint venture will increase by 180%. Another major investment involves construction of a technological complex for ferromanganese production in Siroke plant. It is scheduled for completion in 1st half of 1999 and will increase the efficiency of manganese alloys.

The major consumer for the iron alloys from Istebne is Trinecke zelezarny (Trinec iron metallurgy plant). The latter is connected with the OFZ through capital of Moravia Steel holding 29.5% shares on OFZ. Moravia Steel owns 50.9% of Trinecke zelezarny and is a part of a trust 1 Silas Trinec, roofs a production holding containing the Trinecke zelezarny and joint stock companies of Energetika Trinec, Vesuvius, Ferona, Retezarna (chain manufacturer) Ceska Ves, MS Unikov, and Mining and Metallurgy Pension Fund. OFZ supplies 50% of its annual production - 190 thousand tons - to the Czech market Its equity is SK 1.1md with annual turnover over SK 4md. Connection of the OFZ with the Trinecke zelezarny as the final processor of the semi-finished iron alloy makes a strong metallurgical trust in Central Europe aiming to gain dominant position on its markets and increase the efficient of product sale. The EBRD investment in the OFZ might ad to the dynamics of the strategy.

Another major place of the EBRD activities in Slovakia is assumed by Bucina Zvolen. The bank provided the company with a loan of DM 28.54m for modernisation and extension of production capacity, development of energy system and ecological wood production. The transaction, the major one in industry since 1995, set potential for increase of production volume of wood cut boards by 100% and reduction of energy requirements by 25%. The loan has a maturity in 8 years and its interest rate fluctuates depending on Libor and the current rating of SR. The EBRD investment as the sole funding partner was determined by the fact that Bucina has been successfully reconstructed as a medium size firm with good potential for long term rentability. Modernisation extended the production capacity and will increase the production quality, its efficiency and share on the European markets. Bucina is the major wood processing company in Slovakia. The EBRD investment enhanced its position of one of the major wood processors in Europe. Total turnover has reached SK 1.5md with 2/5 being exported mainly to Austria, Italy, CR, Ukraine, and Germany.

Slovak Trade FORUM