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ING Bank is financing with EUR 21 million Vrancart
ING Bank Romania supports with credit facilities totalizing 21.4 million euro the development of Vrancart, one of the largest producers of corrugated board, hygienic-sanitary paper and cardboard packaging on the Romanian market. ING’s funding comprises both working capital facilities and investment loans.
In the context of the growing packaging industry, Vrancart aims to strengthen its market position and invest in the acquisition of high-tech equipment, as well as in the development of recycling, production and logistics capacities. They will be based on the latest energy efficiency solutions and will allow for better recovery and use of renewable resources in production processes.
“ING has always been a partner in Vrancart’s development, showing strong support since the beginning of the partnership in 2014. Over the 9 years, we have financed and refinanced various investment projects to encourage business growth plans. We are happy to be with them through credit facilities of over 21 million euros for their circular economy projects. Sustainability is one of the key pillars of ING’s strategy. We focus on developing sustainable practices among Romanian SMEs and share examples of good practice of entrepreneurs in the ING community. We are proud of the progress we are making, together with our clients, in the transition to a greener future” – alexandrina Baluta, Manager Strategie Companii Medii, în divizia Business Banking, în cadrul ING Bank Romania.
Vrancart owns the largest network of paper and cardboard waste collection centers in Romania. Vrancart is the only hygienic-sanitary paper producer in Romania based on the recovered and processed paper waste in its own factory in adjud, which is then converted into consumer products through the facilities of Rom Paper’s subsidiary in Brasov and adjud.
Currently, the company recycles more than 40% of the total amount of scrap collected nationally, which means about 300 tons of paper and cardboard waste recycled daily.
In 2022, through the network of collection centers, Vrancart collected over 150,000 tons of non-hazardous waste recycled in its own facilities or at partners.
“ING’s new funding targets all three divisions of the company, namely Waste Management, Paper and Packaging. The investment process is expected to take place in the next two years, so Vrancart will consolidate its position as a champion of circular economy in Romania. Following the inauguration of the first 1 MW photovoltaic park in august, the Vrancart Group is carrying out other renewable electricity and thermal projects to be completed during the next year: a new 20 MW photovoltaic park and a high energy efficiency cogeneration station, which together will provide more than 50% of domestic consumption needs. We are also developing recycling facilities for plastic, wood waste, as well as paper and associated residues of lower quality that will transform into raw materials or finished products for the various production and packaging needs of the market in Romania and the region. Thus, starting next year, we will be able to say that in Vrancart nothing is lost, everything turns into a sustainable and durable development of both the company, but also the environment and the Romanian society” – Dragos Holban, CFO în cadrul grupului Vrancart.
The Vrancart Group realized in the first semester of the year a net profit of 10 million lei and total revenue of 285 million lei from 2023. Since 2005, Vrancart has been listed on the Bucharest Stock Exchange.
Vrancart Group, which is 46 years old on the Romanian market, consists of 4 companies: Vrancart S.a., Rom Paper, Vrancart Recycling and Ecorep Group.