Investments

The investments for the year are shown in the table below.

DESCRIPTION (thousands of Euro) 2018 2017
Rights, trademarks and brands 1,361 409
Intangible fixed assets in progress 1,029 2,082
Other intangible assets - 8
Land and buildings 52,038 4,933
Plant and equipment 111,902 17,457
Fixtures and fittings, tools and other equipment 555 898
Other tangible assets 1,937 6,054
Tangible fixed assets in progress and advance payments 223,518 405,084
TOTAL 392,340 436,925

The investments for the year mainly related to:

Sofidel America:

  • in Circleville, Ohio, the construction of the integrated plant has been completed; it houses two paper mill machines and several converting machines for converting reels into finished products. The two machines started production in June 2018 and October 2018 respectively;
  • in Inola, Oklahoma, the company has begun construction on a new greenfield investment for an integrated plant (paper mill and converting). The investment refers to the installation of two paper mill machines, with a total production capacity of 120,000 tonnes per year, and several converting lines. Work started in March 2018 and will be completed by the end of the first half of 2020.

Spain:

  • in Buñuel, work was completed on the installation of the second paper mill machine and the related converting lines.
    The new machine started production in the second half of 2018.

In general, all the other investments made refer to continuous improvements in all production processes, in line with the Group’s consolidation and growth strategies. For further information on the economic and financial results, please refer to the 2018 Consolidated Financial Statements.

Significant post balance sheet events

In order to obtain the necessary financial resources to support its investments cycle according to the objectives set out in the business plan of the SOFIDEL Group for the years 2018-2021, as a result of the agreements reached on 26 April 2019 with Banca Nazionale del Lavoro S.p.A., Intesa Sanpaolo Spa, Mediobanca – Banca di Credito Finanziario S.p.A., Unicredit S.p.A., Cassa Depositi e Prestiti S.p.A., Banco Bpm S.p.A., Banco Sabadell S.A. London branch, the Parent Company signed a medium-term loan agreement for a total of EUR 320 million.

The loan granted is intended partially for the refinancing of the capital expenditure already incurred by the Group, and for the remainder, is targeted at providing support for the planned investments in 2019.

On 26 April 2019, the loan agreement was signed and the Parent Company requested the first disbursement for a total of EUR 224 million for: i) 2018 capital expenditure; ii) 2019 capital expenditure; iii) legal fees and expenses. The sums so requested were obtained, with value date of 30 April 2019.

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