December 21, 2017 / 2:50 PM / in 2 months

Russia's Metafraks secures 700 million euro credit line from Gazprombank

YEKATERINBURG, Russia (Reuters) - Russian chemical company Metafraks on Thursday secured a 13-year credit line from Russia’s third-largest lender Gazprombank worth 700 million euros ($830 million), an adviser to the company’s board chairman said.

Metafraks, one of the top three producers of synthetic resins in Europe, plans to invest the proceeds in the construction of a new plant which it expects will take company revenues above $1 billion, Maria Konovalova, adviser to board chairman Armen Garslyan, told Reuters.

The new ammonia, carbamide and melamine production plant will allow the company, which currently produces only one of the base components of synthetic resins - methanol - to become self-sufficient in raw materials, Garslyan told Reuters in an earlier interview.

Synthetic resins are used in the production of glue, plastic and PVC windows, among other products.

The new plant will cost 950 million euros and is expected to be built near Russia’s Ural mountains by 2021, Konovalova said.

Equipment for the new plant will be supplied by Swiss company Casale SA, based on an agreement reached in early October. Casale will also manage construction.

Metafraks is controlled by businessman Seyfeddin Roustamov and had a revenue of 41.7 billion roubles in 2016.

Reporting by Natalia Shurmina and Tatiana Voronova; writing by Polina Ivanova and Polina Devitt; editing by Maria Kiselyova/Mark Heinrich

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