Bloomberg News

EBRD Lends Up to $13 Million to Ukraine’s Components Maker

December 12, 2011

(Updates with energy saving, emission reductions from third paragraph.)

Dec. 12 (Bloomberg) -- The European Bank for Reconstruction and Development agreed to lend as much as $13 million to ZAT Lugcentrokuz, a Ukrainian private producer of key components for rail freight wagons and locomotives.

The loan will help Ukraine improve freight transportation services and replace aging wagons, the London-based bank said today in an e-mailed statement. Lugcentrokuz will be able to improve its product range and sales in Ukraine, the post-Soviet Commonwealth of Independent States and other markets such as Europe, North America and India.

The company will save around 4,000 mega-watt-hours a year and also reduce natural-gas consumption, the EBRD said. This will allow annual greenhouse emissions to be reduced by the equivalent of around 7,000 tons of CO2, the statement said.

Lugcentrokuz makes shock absorbers, axles, wheel sets and springs for railway cars. The company will also spend the loan to improve its water supply and use leading to higher environment standards, the bank said.

--With assistance from Daryna Krasnolutska in Kiev. Editor: James M. Gomez

To contact the reporter on this story: Kateryna Choursina in Kiev at kchoursina@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net


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