OREANDA-NEWS. February 13, 2012. The EBRD is lending EUR 5 million to finance the building of a furniture plant in a fast-growing cluster on Belaruss border with Russia. The plant will use raw material supplied by the clusters first project, a Lithuanian-owned wood processing plant, to which the Bank provided an initial loan seven months ago, reported the press-centre of EBRD.

The output of the two plants, which are situated in a free enterprise zone outside the border city of Mogilev on Belaruss eastern border, is earmarked for the biggest retailers in the region and particularly targets a rapidly developing consumer market in Russia. Both plants are owned by Lithuanian investors.

This seven-year loan not only adds to the attractiveness of a strategically placed furniture cluster but will also contribute to the development of Belaruss forestry industry, one of the countrys main exporters, said Francis Delaey, the Head of EBRD Minsk Resident Office.  

The borrower is IOOO Mebelain, which is controlled by Lithuanias SBA Furniture Group, one of the biggest manufacturers in this sector in the Baltic states. The projects total cost is estimated at around EUR 14 million.

When completed, Mebelains greenfield plant aims to produce about 750,000 items of veneer-faced furniture a year.