The Indians of TDI want to borrow money from banks for the plant of Olteniţa

• The company would like state support for the investment of 150 million Euros

Transdanube Industries SRL (TDI) wants to finance the construction of the reinforcing bar plant of Olteniţa using a combination of its own funds and bank loans. Tommaso Serrano, the managing director of TDI yesterday said in Olteniţa: "We intend to borrow money from Romanian and foreign banks to cover 30-40% of the total cost of the investment of Olteniţa of 150 million Euros. During this period, lending terms are rather unfavorable but we are continuing our negotiations with banks such as BCR and Unicredit in Romania, as well as with international financial institutions such the EIB or Citibank. So far, we have invested around 20 million Euros in the construction of the reinforcing bar plant of Olteniţa, with half of that amount going towards the purchase of the 21 hectares of land needed for the investment".

Mr. Serrano also said that the aid of the state would be welcome in the creation of this investment. The managing director of TDI said he has already begun the negotiations with the Romanian authorities to help the Indian company receive the support of the Romanian state concerning the approaches for the authorization of the investment, as well as for the development of the local infrastructure. Tommaso Serrano explained: "When I am speaking of a state aid for the plant in Olteniţa, I am not speaking of money, but rather of administrative assistance, because Romania is an extremely bureaucratic country. For instance, we need the strengthening of the network for the distribution and transportation of electricity, but we also need better road infrastructure."

The reinforcing bar plant that TDI plans to build in Olteniţa will have an annual output capacity of around 500,000 tons. TDI hopes to secure the environmental permits on time in order to allow beginning construction in the spring of 2011. The plant will begin production in 2013, and at the end of that year TDI expects a turnover around 250 million Euros. The reinforcing bars will be sold on the domestic and foreign markets alike. TDI is making this investment because it expects the real estate market in Romania and in Eastern Europe to return to an upward trend.

Officials of TDI said that they do not condition the completion of the investment on the aid from the Romanian state. TDI is part of African Industries Group, held by the well known Indian family Gupta. TDI SRL entered the Romanian market in 1996 with trading operations on the reinforcing bar market. The company is counting on using Romania"s scrap iron resources for its production.