NEFCO and the Swedish paint maker Eskaro Group AB have signed a loan agreement to finance the modernization of the latter’s vehicle fleet in Ukraine and Belarus. As part of the modernization process, Eskaro’s outdated vans will be replaced with fuel efficient ones to promote efficiency and decrease environmentally harmful emissions.
According to the terms of the agreement, Eskaro’s subsidiaries in Ukraine and Belarus will purchase large capacity diesel-powered vans to improve transportation of the companies’ products and overall logistics.
Besides using fuel efficient vans, the vehicle modernization scheme will also reduce emissions indirectly by reducing the number of delivery trips. Financially, the Eskaro subsidiaries are expected to save approximately EUR 68,000 annually as a result of lower maintenance costs, reduced deliveries and less demand for transport services from third party providers.
The vehicle efficiency measures are expected to reduce emissions of carbon dioxide, volatile organic compounds, nitrogen oxides and carbon monoxide.
The transport fleet replacement programme is being financed by Eskaro and from NEFCO’s Facility for Cleaner Production, whose purpose is to promote efficient industrial production and curb the emissions of harmful substances into the environment. The facility can finance up to EUR 350,000 or 90 per cent of the investment cost for such projects through favourable loan financing.
In 2010, NEFCO invested in the production of environmentally friendly paint by providing equity and share capital for Eskaro’s paint factory in Odessa, Ukraine. The factory, which went on stream this year, will replace local production of oil based paint. Eskaro’s production is based on a closed circuit system, which does not cause environmentally harmful discharges into surrounding waterways.
The Eskaro Group is headquartered in Gothenburg, Sweden and has branches in Belarus, Latvia, Russia, Finland, Ukraine and Estonia.