LONDON (Aug. 28, 2001)—The European Bank for Reconstruction and Development is considering a $30 million financing request for the development of Romanian operations of French tire maker Group Michelin.
The EBRD's board was expected to discuss the proposed funding, which involves equity and debt facilities, in early September, according to a posting on the bank's Web site.
Michelin recently bought two tire plants, a retreading unit and distribution centers from Romania's Tofan Grup in a deal worth around $85 million. Under the transaction, a new entity Michelin Romania was to be launched with an estimated turnover of $80 million. The EBRD said the project would have a strong impact on the transfer of new technology and management know-how in Romania, making the local tire industry more competitive.