Luxembourg, 08/04/2005 (Agence Europe) - The European Investment Bank (EIB) has decided to grant two loans, for a total of around EUR 94 million, for two separate projects in Brazil:
(1) The first loan of some EUR 54 million for the upgrading of an oil refinery in Southern Brazil is for Repsol YPF Brasil S.A.. The loan will support the technical and environmental upgrading of the Alberto Pasqualini refinery in the State of Rio Grande do Sul, next to Porto Alegre. The project will raise the refinery's capacity by some 40% and help meet growing domestic demand for oil products. The investment aims as well at reducing the specific emissions from the refinery to alleviate local air quality problems. The refinery represents some 8% of the total refinery capacity in Brazil, which is currently made up of 13 refineries;
2) The second loan, of EUR 40 million, is to implement a new production facility of Continental do Brasil Produtos Automotivos Ltda (a wholly owned subsidiary of Continental AG of Germany) for passenger car tyres. The additional capacity will contribute mainly to exports towards the NAFTA market, and partly to satisfy the fast-growing domestic demand. The new plant is placed close to Salvador de Bahia (north-eastern Brazil) in the Camaçari Petrochemical Industry Park.