KUKE and Bank BNP Paribas support Boryszew’s expansion in the automotive industry
Boryszew, one of the largest producers of car parts in Poland, received two loans from BNP Paribas Bank with a total value of PLN 200 million. The financing will allow the company to increase and modernize the production capacity at its plants in Poland and Mexico. The financing was possible thanks to new insurance and bonding facilities aimed at supporting Polish exporters which were recently introduced by KUKE.
First use of a new export support facility
Boryszew will be the first Polish exporter whose loan for a foreign direct investment and its repayment have been insured with KUKE. The financing provided by BNP Paribas Bank will enable the development of the plant in Mexico with a line for the production of air conditioning hoses for electric car manufacturers. Thanks to the insurance, the risk carried by the bank was significantly reduced, giving it more capacity to provide financing for Boryszew’s foreign investments.
Polish direct investments abroad
In the latest report of PFR TFI, PwC and KUKE on prospective investment directions for Polish companies, India is in the first place in practically all categories. In high places from non-European countries we can find, among others Israel, Chile, South Korea, Thailand, Malaysia, Morocco and Turkey.
According to the report, in 2020 foreign direct investments in the automotive industry exceeded USD 20 billion. For years, Poland has specialized in the production of car parts - this is our largest export position, giving us the 5th place in this category among the European Union countries.
Insurance of investments in Poland generating exports
Boryszew also invests in the development of domestic plants in the automotive industry. The funds granted by BNP Paribas under the second loan will allow the purchase of new production lines and equipment for the factory in Toruń, Poland, where air conditioning elements installed in electric cars will be manufactured. The value of this investment is EUR 20 million. Here, KUKE will guarantee the loan intended to finance a domestic investment that generates exports. It is worth noting that the share of exports in the revenues of the Boryszew Group has exceeded 60% in recent years, and the level of 20% is sufficient to obtain the guarantee from KUKE. This is another use of the KUKE guarantee to strengthen the production potential of the Polish exporter.
The Boryszew Group is the largest Polish manufacturer in the automotive industry. Every tenth car in the world and every fifth in Europe has parts manufactured in one of the Group's factories.