EBRD loan of €31.5 million for greenfield industrial gases plant in Croatia

• EBRD loan will finance construction and equipment of state-of-the-art air separation unit
• OXY Technical Gases established by two leading Italian firms in Velika Gorica, Croatia
• High-purity liquid oxygen, nitrogen and argon will supply Croatia and the region  

The European Bank for Reconstruction and Development (EBRD), is providing a €31.5 million long-term loan to OXY Technical Gases (OXY), a Croatian joint production project between two leading Italian producers of industrial gases, to support construction and operation of a greenfield state-of-the art air separation unit (ASU) in Velika Gorica, in the vicinity of Zagreb. The proceeds of the EBRD financing will be used to co-finance the construction works and the purchase of equipment. The total cost of the project is €51.5 million.

OXY is a newly established joint venture of the leading industrial gas producers in Italy, SIAD Group and the SOL Group, which have, for the first time, decided to join forces for their international expansion in the region. The project in Croatia will contribute to increasing the quality and stability of supply of high-purity gases, including liquid oxygen, nitrogen and argon. These gases, produced at cryogenic temperatures, will be supplied to SIAD and SOL’s customers such as hospitals, industrial factories and other consumers across Croatia and neighbouring countries.

Victoria Zinchuk, EBRD Director for Central Europe, said: “The EBRD is very happy to provide further support to SIAD’s expansion in central Europe and to see that this cooperation is now being expanded to SOL Group via this innovative project in Croatia. We are also pleased that, by supporting this great project, we will contribute to the creation of 45 new employment roles in Croatia, thus offering interesting job opportunities to young and educated people in the city of Velika Gorica.”

Roberto Sestini, President and Chief Executive Officer of the SIAD Group, said: “We are honoured to continue our collaboration with the EBRD, which has already supported one of our previous projects in the region. Working on programmes that obtain the support of the EBRD brings a commitment to carrying out projects that generate extra value for all stakeholders in our countries of operations. This particular endeavour will lead to an increase in the local production of industrial and medical gases.”

Aldo Fumagalli Romario, President and CEO of the SOL Group, commented: “We are particularly pleased with the EBRD supporting this project in Croatia. Having such an important financial institution backing us motivates us but also highlights the credibility of SIAD and SOL.”

Over the last 30 years, the EBRD has invested almost €4.5 billion in Croatia, with more than 70 per cent of that in the private sector and more than €1 billion in sustainable infrastructure. In 2022, the EBRD invested €300 million in various sectors in Croatia.