Date: 08.01.2025
VÍTKOVICE MACHINERY TRADE succeeded in restarting production in two plants in LIBERTY Ostrava last year thanks to successful tolling. All this thanks to the financial assistance of the ČSOB Group, the state-owned Export Guarantee and Insurance Corporation (EGAP) and the Všeobecná úvěrová banka.
Restoration of traditional production of Czech bollards, at the rourovna or rolling mill. These are examples of the successful tolling project at LIBERTY Ostrava, which has received significant assistance from financial institutions.
"I would like to thank our financial partners for their trust and support in the implementation of this successful tolling project. Cooperation with financial institutions enabled us to secure the necessary financing," said Radek Feiferlík, Treasury Director of CE Industries.
The ČSOB Group has provided VMT of CE Industries with a tolling operating loan of approximately CZK 880 million and a factoring credit facility of up to CZK 750 million to enable the partial restoration of operations at the rolling mill of the metallurgical company Liberty Ostrava.
"This financing allows Vítkovice Machinery Trade to continue tolling the operation of the rolling mill at Liberty Ostrava, which is in insolvency, and thus continue to provide work and maintain employment in the Ostrava region," says Aleš Blažek, CEO of the ČSOB Group.
The Export Guarantee and Insurance Corporation (EGAP) is involved in securing operational financing from ČSOB. The tolling project is also financially supported by the General Credit Bank.
"Thanks to the FlexiFaktoring programme, Všeobecná úvěrová banka Praha provided VMT from the CE Industries group with a loan of EUR 21 million, equivalent to about CZK 525 million. The second financial assistance from VÚB Praha was a credit framework for factoring worth EUR 40 million, i.e. up to CZK 1 billion," adds Matej Molčan, Director of Corporate Banking at VÚB Praha.
Vítkovice Machinery Trade, a member of the CE Industries industrial group, focuses on preserving traditional Czech industry. It focuses mainly on so-called tolling projects. This is the financing of inputs where the purchase of materials is covered by a third party independent of the manufacturing company, which usually cannot pay for the materials itself. The tolling company buys the input material with funds from a bank loan, has it made into finished products in the production plant and then sells them to customers itself.
About CE Industries
CE Industries is an industrial holding company operating in the European markets of rail transport, raw material recycling and energy engineering. It is also involved in restructuring projects and distressed assets.