Exports to Brazil: KfW IPEX-Bank finances European plant engineering

Frankfurt am Main (ots) -

- Bilateral loan of EUR 51 million
- SMEs deliver special equipment for environmentally friendly
production
- Recycling: wood chips processed into various particle board
materials

KfW IPEX-Bank is using a loan worth EUR 51m to finance the export
of special equipment to South America for the environmentally
friendly production of particle boards. Brazilian-based Berneck S.A.
Painéis e Serrados (Berneck) is the borrower and the company ordering
the equipment, which is supplied by various small and medium-sized
enterprises from Germany and other parts of Europe. The funds come
with an export credit guarantee by the German Federal Government
(covered by Hermes).

"The Brazilian economy continues to grow, and with it,
opportunities for German and European special equipment manufacturers
to boost their unit sales", said Markus Scheer, member of the
Management Board of KfW IPEX-Bank. "We are financing investments in
modern equipment for our long-standing customer Berneck. With the new
machines the company will be able to significantly increase its
environmentally friendly production." Even the first production
facility for particle boards from 2001 can be traced back to
financing from KfW.

Berneck has been active in the Brazilian wood processing and
production market more than 60 years. The family-owned company
initially started off as a pure saw mill business and has grown to
become the country's second-largest particle board manufacturer. The
export of machines from SMEs currently being financed by KfW
IPEX-Bank is now expected to help further expand production at the
Curitibanos site in the south of Brazil. This is where Berneck
produces various particle board materials, largely using waste from
its own saw mills.

Some expect considerable growth potential from the Brazilian
furniture market: The Brazilian government has created the
state-funded "Minha Casa, Minha Vida, Minha Casa Melhor" housing
construction aid programme, especially for the poorer parts of the
population. In doing so, it has made loans available at cheaper rates
for home financing as well as for outfitting such homes with
furniture. As a result, the furniture industry anticipates stronger
demand for particle boards, one of the most important basic materials
in the segment.

About KfW IPEX-Bank GmbH

Within the KfW Group, KfW IPEX-Bank is responsible for
international project and export finance. Its function of providing
financing to boost the German and European economy is derived from
the legal mandate assigned to KfW. It offers medium- and long-term
financing to support key export industries, to develop economic and
social infrastructure and to fund environmental and climate
protection projects. KfW IPEX-Bank operates as a legally independent
group subsidiary and plays a major role in fulfilling KfW's
promotional mission. It is represented in the most important economic
and financial centres across the globe. To support its business
operations in South America, KfW IPEX-Bank has maintained a
representative office in São Paulo, Brazil's main economic hub, since
2002.

Contact:
KfW IPEX-Bank GmbH, Palmengartenstraße 5-9, 60325 Frankfurt
Thomas Krick
E-Mail: thomas.krick@kfw.de
Tel. +49 69 7431-8454, Fax: 069 7431-9409,
E-Mail: info@kfw-ipex-bank.de,
Internet: www.kfw-ipex-bank.de