"Kovalska" invests €27 million in a new plant in the Lviv region
Invest International provides export finance to support a new Aircrete aerated concrete plant for Kovalska, Ukraine
The "Kovalska" Group signed a €27 million loan agreement with Invest International for the development of the production of environmentally friendly aerated concrete blocks and panels by the Aircrete Europe corporation in Ukraine. The loan, funded via the Dutch Good Growth Fund (DGGF), will be used to finance machinery as well as the commissioning of the new production plant located in Rozvadiv, Ukraine.
The project is relevant to the ongoing reconstruction efforts in Ukraine and shows how effective cooperation between businesses, alongside international institutions and governments, can collectively ensure Ukraine's recovery.
Sergii Pylypenko, CEO of Kovalska Group: "Following the scale of destruction, the private sector, alongside the Government of Ukraine, now has the critical role of rebuilding the country. Kovalska is committed to the restoration of Ukraine. To do that, we need strategic investment and international partnerships. The financing of this project through Invest International has been very productive and I look forward to continue our relationship over the years to come throughout the reconstruction in Ukraine."
Joost Oorthuizen, CEO of Invest International: "Financing this project is important to Invest International given its relevance to the reconstruction efforts in Ukraine. We recognise that there is a monumental task ahead to restoring what has been lost during the war. The reconstruction provides the opportunity to stimulate foreign investment and enhance skills and encourage innovation which this project embraces. Not only that, but it will allow Aircrete Europe, as a Dutch corporate, to further scale up its sustainable and cost-effective technological solution for a traditionally energy-intensive industry."
Ralf Beier, Managing Director of Aircrete said: "This project in Ukraine is an important step in the country's reconstruction. The factory will be equipped with the latest Aircrete innovations to achieve the highest level of automation, productivity, and superior product quality with Super Smooth surfaces. We thank the Kovalska team for entrusting us with this landmark project to build a modern showcase factory in Europe."
The lightweight concrete technology of Aircrete Europe (a.k.a. autoclaved aerated concrete) saves at least 20% on energy consumption in buildings through its superior insulation properties and has the further benefit of avoiding much of the soil erosion associated with clay extraction for the production of traditional bricks.
The project will contribute to SDG 8 (Decent work), SDG 9 (Industry, Innovation and Infrastructure) and SDG 13 (Climate action). It is expected that additional local direct employment of approximately 350-400 jobs will be created during the plant's construction, and approximately 240 new direct jobs during operation phase. Collectively, the project aims to contribute to the international effort to support Ukraine to recover as an innovative, modern and green economy.