Nov 23, 2005. /Lesprom Network/. The European Bank for Reconstruction and Development said on Tuesday it has extended Euro 18 million loan to Bulgarian pulp producer Sviloza to enable a twofold increase in production capacity and strengthen its positions in the regional market. The Nordic Investment Bank is expected to lend another Euro 10 million to the company, the EBRD said in a statement. The loan will be used for energy efficiency investments to enable the company make significant energy savings, it added. "The loan is in line with the EBRD's new strategy for Bulgaria, expected to be approved this month, to provide long-term financing to help domestic companies become more competitive, and to meet EU environmental requirements," the statement said. Pulp and paper, a traditional sector in Bulgaria, has been experiencing a decline for years now, it added. Sviloza, based in the northern Bulgarian town of Svishtov, is the country's sole sulphate bleached hardwood pulp manufacturer. It exports more than 90% of its production, mainly to the European Union, South Korea, Mexico and Japan. Sviloza turned to profit of BGN 1.8 million ($1.0 million) in the first nine months of 2005, while its revenue fell by some 10% to BGN 49.8 million ($29.9 million) on the year.