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Summary of Project Information (SPI) |
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| Project number | 9362 |
| Project name | Microtronic Polska S.A. |
| Country | Poland |
| Sector | Computer & Electronic Products(Computers & Peripherals, Communications Equip., Elec. Watches & Similar Elec. Products. Integrated Circuits & the application of Miniturization Technologies characterize this sector.) |
| Department | Reg Manufact, Agri & Services, EMENA |
| Company name | Investment Fund for Central and Eastern Europe |
| Environmental category | B |
| Date disclosed | November 10, 1998 |
| Status | Hold |
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Summary Of Project Information (SPI)
| Project Name | Poland: Microtronic Polska |
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| Region | Central and Eastern Europe |
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Project No009362
Projected Board DateDecember 10, 1998
Company NameMicrotronic Polska Sp. z o.o.
Technical Partner and/or Major Shareholders
The project sponsors are Microtronic A/S with 66.7% shareholding in the Company and The Investment Fund for Central and Eastern Europe (IO)with 33.3% shareholding. Microtronic A/S is a medium-sized Danish firm, with a strong market position and reputation, owned by private investment funds and management, as follows: Nordic Private Equity Partners I & II (38%), Intermediate Capital Group PLC (37%), Erhvervinvest Nord A/S (16%) and management (9%). The second sponsor,IO, is a bilateral fund created by the Danish Government to promote economic activity in the region.
Project Cost Including proposed IFC investment
The total project cost is approximately US$2.8 million equivalent including an IFC Loan of up to US$470,000 equivalent. The loan will be made under the IO/IFC Co-Investment Line (project number: 7393), which was approved by the IFC Board on October 3, 1996.
Location of project and Description of site
The company is located in an industrial estate in Szczecin, the second largest port city in Poland.
Description of Company and Purpose of Project
This project concerns the establishment of a company, Microtronic Polska Sp. z o.o. to produce electro-mechanical components, transducers and rotary switches for hearing aids. The main Sponsor, Microtronic A/S is a major industry producer and seeks to increasingly shift production to Poland to benefit from lower labor cost and remain competitive in the world markets. The Sponsor has been producing in Poland since 1993 through a local subcontractor, which is now undergoing management difficulties. To ensure continued high product quality, the Sponsor decided to establish its own Polish production facility which will contract labor, already familiar with their products, from its former Polish subcontractor and will assemble hearing aids components using machinery and know-how provided by the Danish Sponsor.
IFC's role in the Project, an SME, will result in know-how transfer, job creation, as well as the preservation of jobs of its former Polish subcontractor (now troubled). The Project is the Sponsor’s first direct investment in Poland, and it has requested the financial involvement of the I Fund and IFC due to their local knowledge and standing. Further, the Sponsor itself is a medium-sized company, with limited access to expansion financing.
Environmental Category and Issues
This is a category B project according to IFC’s environmental review procedure. The potential environmental issues which were reviewed for this project include: site location, air emissions, solid waste handling, noise, and employee health and safety. The Company will lease a part of an industrial building in Szczecin and the production will have no negative impacts on the surroundings. Waste in the form of plastic will to the extent possible be recycled through the supplier, and the rest will be disposed of through the local waste handling system. There is no noise from the production. Occupational health and safety issues include repetitive work and potential exposure to fumes. The Company will use a system of job rotation to address repetitive work issues. Fumes associated with gluing of components are minute. Microtronic is certified for ISO 9001 and will institute ISO practices in new facility. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that Microtronic’s proposed Project will meet the World Bank environmental health and safety policies and guidelines as well as Polish environmental laws and regulations.
The is from the InfoShop.
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| Date SPI sent to InfoShop | November 10, 1998 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384 |
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| Environmental documents for this project are available at http://www.ifc.org/projects and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html). |
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