IFC SIGNS AGREEMENT TO STRENGTHEN CONSTRUCTION MATERIALS SECTOR IN THE BALTIC REGION
Amy Conran
(1-202) 473-9119
HELSINKI, Dec. 13 -- The International
Finance Corporation (IFC) today signed an agreement to help establish Rudus
Oy, a Finnish holding company that will invest in the construction materials
sectors of Estonia, Latvia, Lithuania, and St. Petersburg. Rudus will make
equity investments in small and medium sized companies producing ready
mix concrete and concrete products such as pipes, paving stones, and aggregates.
Rudus will also provide management expertise to these businesses, maintaining
management control in acquired companies to ensure efficient production
and high quality standards. Several of Rudus' investments will rehabilitate
and privatize companies while improving their technology. Demand for Rudus'
output is expected to increase as infrastructure is improved and housing
construction is renewed in the Baltic region. In addition to IFC's investment
of US$1.4 million in Rudus, the company will be 60 percent owned by Lohja
Oy Finland, a subsidiary of Euroc AB, a Swedish-Finnish construction materials
company, and 20 percent owned by Finnfund, the Finnish Fund for Industrial
Development Corporation. The total capitalization for Rudus will be US$7.24
million. IFC, a member of the World Bank Group, is the largest multilateral
source of equity and loan financing for private sector projects in developing
countries.
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