Serbia’s Galeb set to expand
Serbian can making company Galeb Metal Pack (GMP) has secured funding from the European Bank for Reconstruction and Development (EBRD) which will allow it to expand operations.
The company is a leading producer of metal packaging in the Western Balkans. The EBRD’s €4 million financing facility, which includes debt and equity, will help GMP improve its competitiveness within EU markets.
Through this project the EBRD is acquiring a 10% stake in GMP.
GMP, part of Galeb Group, is the leading light metal packaging manufacturer in Serbia and in the wider region. It produces crown corks, aluminium screw caps, drawn cans and aerosol packaging used in the beverage, food packaging and pharmaceutical industries. Customers include Coca-cola, Heineken and Carlsberg.
This investment will be used to finance the purchase of new equipment for the manufacturing of new types of closures that are currently not produced in Serbia, the construction of a new high rack warehouse that will enable GMP to better monitor its stock levels and to make the production cycle more efficient. The funds will also help the company to improve its balance sheet.
“The EBRD is pleased to support GMP’s growth strategy. This project will help GMP in its drive to diversify its product range, raise environmental and health and safety standards and thus become a more competitive player on European markets,” says Hildegard Gacek, director of EBRD Serbia.
Radoslav Veselinovic, president of Galeb Group company, added: “The agreement with the EBRD will enable us to finance our future development and to increase exports to foreign partners up to 70%. This is an important day for us, having a wide open door towards western and eastern markets, which is in line with our forecasts. Its up to us now to prove the name of the most promising light metal packaging manufacturer in South-Eastern Europe.”