VKG Takes Fresh Loan, Plans New Oil Shale Plant
Oil shale company Viru Keemia Grupp is borrowing 150 million euros to build an oil plant, expand production and comply with environmental requirements.
"The EU's environmental policies requires industrial companies to make large additional investments," uudised.err.ee reported VKG deputy director Ahti Puur as saying.
"The growing debt burden will in turn set strict requirements for production efficiency which will affect every process from mining to heat, power and water management," he said.
The loan was signed with a Scandinavian banking syndicate. Repayments will begin in 2015.
Fresh finances will help build a new oil plant, called Petroter III. VKG is currently in the process of building Petroter II and Petroter I is already built.
In 2010, VKG had borrowed 221 million euros. The plans for that loan have been successfully implemented.
VKG employees 2,000 people and five oil shale processing plants. Last year, the company had a turnover of 216 million euros.