LONDON, Jan. 12 (UPI) -- A Belgian aerospace company is expanding into Romania with financial help from the European Bank for Reconstruction and Development.
The aid to the company, Sonaca, is in the form of an $8.5 million loan, which will finance construction of the plant in northwestern Romania. The plant will produce wing components for aircraft manufacturers Airbus and Embraer.
"Sonaca's new plant will contribute to the sustainable development of the aerospace industry in Romania," said Matteo Patrone, EBRD regional director for Romania and Bulgaria. "We firmly believe that the plant will demonstrate that high-quality elements for wing aerodynamics can be produced here, and that this will attract further investment into higher value-added manufacturing in the country and strengthen the local knowledge base."
Construction of the Sonaca plant is expected to be completed by 2018.
Bernard Delvaux, chief executive officer of Sonaca SA, said company's new operation in Romania would strengthen the company's competitiveness and ensure renewed growth.
The investment is part of the EBRD's efforts to enhance the competitiveness of Romania's private sector and drive job-generating foreign direct investment in the country. The bank is a major institutional investor in Romania.