The European Bank for Reconstruction and Development (EBRD) has granted a €25mn loan to Universal Alloy Corporation Europe (UACE), a producer of aluminium components for aircraft, giving a boost to Romania’s growing aerospace industry.
The credit is an extension of a €25mn loan EBRD provided to UACE in 2012, and will enable the company to increase capacity across all activities. It will also support the introduction of innovative technologies, such as full recycling of metal chips, as well as training of local staff.
EBRD was not able to disclose the tenor of the loan.
UACE, based in Maramures in northern Romania, supplies leading aircraft manufacturers such as Airbus, Boeing, Bombardier and Premium AEROTEC, and has experienced increased demand as a result of the rapid growth of the air transport industry.
EBRD says the investment is part of its efforts to bolster the competitiveness of Romania’s private sector and drive foreign direct investment in the country.
According to EBRD director and regional head Matteo Patrone, Romania is moving toward a “more sophisticated manufacturing sector”.
“UACE’s success proves that Romania can become a true hub for manufacturing, able to attract foreign investors to its qualified workforce,” he says.
The company, a part of the Swiss-Austrian Montana Tech Components group, was set up in 2008 and is among the world’s four leading producers of metal aerospace parts.
UACE was presented with a Best Performer Award in aerostructure and materials by Airbus in 2015, for “consistent delivery on expectations”.
To date EBRD has invested over €7bn in the country and mobilised more than €14bn from other sources of financing. Earlier this year, the bank provided a US$8.5mn loan to Belgian aerospace company Sonaca to expand its operations in Romania.