Pannonia secures financing for Hungarian ethanol expansion plans
Pannonia Ethanol Zrt. has announced that it has successfully completed an EUR 135 million credit facility agreement with a consortium of Hungarian banks. The facility will support expansion at the company’s ethanol biorefinery in Dunaföldvár, Hungary.
Pannonia Ethanol Zrt, a subsidiary of Ireland-based Ethanol Europe Renewables Ltd (EERL) has announced that it has successfully completed an EUR 135 million credit facility agreement with a consortium of Hungarian banks.
– The Dunaföldvár plant currently supports over 2 000 direct and indirect jobs in the Tolna County region and is already the largest biorefinery in Europe. This investment further reduces costs and increases production capacity across the board. It also supports the introduction of innovative new bioproducts that promise significant benefits for human and animal health with maize purchasing from farmers will exceed 1 million tonnes in 2017, said Mark Turley, CEO of Ethanol Europe Renewables (EERL) in a statement.
The announcement was made during a trade promotion visit to Ireland by Dr László Szabó, Deputy Minister and Parliamentary State Secretary of the Ministry of Foreign Affairs and Trade of Hungary.
The credit facility will support expansion at the company’s Dunaföldvár ethanol biorefinery facility in Hungary. The investment, which represents the second round of expansion at the facility will see new projects, cost reduction, additional jobs, and increases in both corn buying and animal feed output.
– We are very pleased that this facility has been provided by a consortium of Hungarian banks, the Budapest Bank, Hungarian Export-Import Bank, K&H Bank and Raiffeisen Bank. The package provides new credit capacity for our normal working operations, finances an expansion of ethanol/animal feed production capacity and restructures existing low debt levels on a more economic basis, said Eric Sievers, Investment Director, EERL.