Czech Export Bank will continue crediting modernization of Urals industry

09.04.2010 — News

THE SVERDLOVSK OBLAST

Alta, a Czech company, has confirmed the allocation of 280 million Euro for the reconstruction of OAO NPK Uralvagonzavod (Ural Railway Car Plant). This money will facilitate the construction of a painting complex by June 2010 and in November - to open the new line for the assembly and pressing of wheel sets.

In early 2009 the enterprise that makes the T-90 tanks and railway cisterns due to the financial crisis has suspended payments for the Alta equipment whose supply is facilitated by the loan provided by the Czech Export Bank. Before the Czech Export Bank has taken on the obligation to issue syndicated loans for the implementation of investment projects in the Sverdlovsk Oblast to the amount of up to two billion Euro with the repayment period of 10 years. A half of this sum was destined to OAO NPK Uralvagonzavod. Negotiations on settlement of the debt took several months.

Aleksandr Misharin, the regional Governor, told RusBusinessNews that now Uralvagonzavod is in conformance to the contractual obligations. This has enabled the Czech Export Bank to start considering a second project in the Sverdlovsk Oblast. OAO Uralchimplast situated, as Uralvagonzavod, in Nizhniy Tagil, is planning the construction of a gas chemicals complex with the capacity of 600 thousand tons of methanol annually. The projects cost exceeds 10 billion roubles and the Czech bank can loan up to 70% of the needed money. The key condition of the CEB loans is that at least a half of the equipment for the project must be purchased form Czech companies.