Vienna, 2012-01-16 – Austrian construction group PORR AG will receive a special-purpose loan from the EBRD (European Bank for Reconstruction and Development) in order to build a sleeper factory in the Serbian town of Svilajnac, around 100km south of Belgrade. With a production capacity of around 200,000 sleepers per year, PORR is set to increase its activities in the South-Eastern European railway market even further. PORR CEO Karl-Heinz Strauss commented: “Following on from the many rail projects we have successfully realised in Serbia, Bosnia Herzegovina and hopefully soon in Macedonia, this new plant will accelerate the extension of Corridor X on the Trans-European network. I am delighted about this cooperation with an international financial institution such as the EBRD, whose top priority is the economic development of the region”.
Given the backdrop of economic uncertainty prevailing in the region, the Deputy Mayor of Svilajnac, Predrag Milanovic, expressed his pleasure about the investments from PORR and the EBRD during his trip to Vienna to mark the signing of the contract. The new plant is not only a confirmation of the region’s development, it will also create new jobs. The sleeper factory will be built on the site of a former nut-and-bolt factory and has direct access to the railway line, allowing the sleepers to be dispatched cost-effectively across the entire region or to be used directly by PORR for further railway projects.
The total investment volume is EUR 5.6m, of which the EBRD is financing 50% in the form of a 7-year credit line. This underlines the EBRD’s support of PORR’s strategy as a full-service construction company in infrastructure – one of its core divisions. “We are expecting great success from this cooperation and we also believe that it will have an extremely positive and sustainable economic effect both for the countries as well as for the EBRD and PORR in equal measure”, said PORR CEO Karl-Heinz Strauss in closing.
About the EBRD
The European Bank for Reconstruction and Development was set up in 1991 to support the development of market economies and democracies in countries from central Europe to central Asia. Since its foundation, the EBRD has grown into the largest financial institution in the region in which it operates. The Bank’s shareholders consist of 63 countries and two intergovernmental institutions. Further information is available at www.ebrd.com.
About PORR AG
Founded in 1869 and floated on the Vienna Stock Exchange in the same year, PORR AG is one of the longest established and largest construction firms in Austria. PORR is a full service provider, offering a comprehensive range of services tailored to national and international markets and covering every aspect of modern construction. Whether it’s building construction or civil engineering, project development, road or tunnel construction – thanks to the seamless value chain, the comprehensive expertise of PORR AG facilitates the successful execution of extremely complex projects. PORR is also carrying out a selective expansion into new markets in the CIS region, Qatar and Oman.
For more information visit www.porr-group.com.
Press release
EBRD and PORR AG agree cooperation in Serbia
EBRD supports PORR in building a sleeper factory
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