BUCHAREST - Vrancart, a leading Romanian paper recycling company, has secured a significant credit facility from ING Bank Romania to enhance its technology and expand capacity. The €21.4 million funding will support the company's focus on energy efficiency and circular economy initiatives, as it aims to fortify its market position as a leader in sustainable practices.
The partnership between ING Bank Romania and Vrancart, which began in 2014, was reinforced today by Alexandrina Băluță from ING’s Business Banking division, emphasizing the bank's commitment to environmentally friendly business growth. The investment underscores Vrancart's reputation for excellence in recycling and waste management, particularly through its Adjud facility and Rom Paper subsidiary in Brasov.
Vrancart stands out as the premier collector of paper waste in Romania, processing over 40% of the nation's paper scrap, equating to roughly 300 tons daily. In the previous year, the company collected over 150,000 tons of recyclable waste. Its ambitious renewable energy projects include the recent launch of a photovoltaic park with a one-megawatt capacity and plans for a substantial twenty-megawatt solar project. Additionally, an efficient cogeneration plant is being developed to supply more than half of Vrancart's energy needs.
The company also intends to improve its recycling capabilities for various materials such as plastics and wood residues. These strategic moves are part of Vrancart's broader efforts to bolster its circular economy model, which seeks to minimize waste and make the most of resources.
Financially, Vrancart has shown resilience and growth, disclosing a net profit of 10 million lei and revenues of 285 million lei for the first semester of 2023. The company has been publicly traded on the Bucharest Stock Exchange since 2005, with its share price recently experiencing an uptick of 1.26%, reaching 0.161 lei.
CFO Dragos Holban has outlined a comprehensive plan for working capital and investment loans that will enable Vrancart to acquire high-tech equipment and expand into new markets over the next two years. This financial strategy is expected to cement Vrancart’s position as a leader in the circular economy while contributing significantly to national environmental efforts.
Vrancart's corporate structure includes subsidiaries like Ecorep Group, which further extends its market presence and underlines its commitment to sustainability and efficient resource management. With these latest developments, Vrancart is poised for continued success in both financial performance and environmental stewardship.
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