|
|
 |
 |
| This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. |
Summary of Project Information (SPI) |
| |
| Project number | 10423 |
| Project name | EPIQ/ELEX CEM |
| Country | Bulgaria |
| Sector | Industrial & Consumer Products |
| Department | Global Manufacturing & Services |
| Company name | Epiq Electronic Assembly EOOD |
| Environmental category | B |
| Date SPI disclosed | November 14, 2000 |
| Projected board date | December 16, 2000 |
| Status | Completed |
| Previous Events | Invested: December 14, 2001
Signed: May 11, 2001
Approved: March 15, 2001 |
|
| Project sponsor and major shareholders of project company |
| The project companies are XPEQT Ltd., established in 2000, and EPIQ Electronic Assembly Ltd., established in 1997, both limited liability companies incorporated in Bulgaria. EPIQ Electronic Assembly Ltd. is 100%-owned by EPIQ N.V., Belgium, which is traded on the EASDAQ. Both XPEQT and EPIQ N.V. are owned by Sigma Delta Holding N.V., Belgium. The Sigma Delta Holding group of companies are European leaders in contract electronic manufacturing. Sigma Delta Holding N.V., and its sister company ELEX N.V., Belgium, will be the sponsors of the project. |
|
| Total project cost and proposed IFC investment |
| The expansion project cost is estimated at Euro 30.7 million. IFC's proposed investment consists of a A loan of Euro 10 million for IFC's own account. |
|
| Location of project and description of site |
| The manufacturing facilities are located in Sofia and in Industrialna zona Microelectronica Botevgrad - 2140, Bulgaria, some 50 km to the north of Sofia. The expansion project foresees construction of two new buildings - one on the existing industrial site in Botevgrad and another one in the city of Sofia. The locations provides the companies convenient air and land transport connections to Europe. |
|
| Description of company and purpose of project |
The proposed project is to modernize and expand the current electronic components manufacturing, assembly, and testing operations of the production facilities of EPIQ-EA and XPEQT, (together "the company"). The project consists of: (i) significantly increasing the production capacity, and adding new technologies, for printed circuit board (PCB) assembly, complex electronic sub assemblies, and testing; (ii) introducing double color and wider application plastic injection moulding; (iii) enhancing the capacity and technical capability of the tooling shop ("the project"). The existing operations in Bulgaria are only the initial phase of a much larger project, and do not realize the full potential of the facilities in Bulgaria to meet the current market demand growth. The company would benefit significantly from the investment, which would significantly broaden the technical scope and product range of the facilities and enable it to further strengthen the Group (includes the ponsors, and their affiliated companies) position in the global contract electronic manufacturing (CEM) market.
EPIQ-EA is limited liability company, founded in 1997, registered in Botevgrad, Bulgaria with a share capital of 1,950,000 BGN, and wholly owned by EPIQ-NV, a public limited company registered in Tessenderlo, Belgium. Its production facility has 3,500 square meters production floor for module assembly and 1000 square meters for assembly, including clean room class 10000, and employs over 500 people. EPIQ EA is QS9000 (1999), VALEO 1000 (1998) and ISO 9002 (1998) certified.
XPEQT (formerly Sigma Delta - Bulgaria) is a limited liability company registered in September 2000 in Sofia, Bulgaria with an authorized share capital of 1,410,500 BGN. It is wholly owned by Sigma Delta Holding N.V. XPEQT specializes in manufacturing of test equipment, and in integrated circuit design and tool making.
IFC’s role in the proposed project is three-fold: (i) increase confidence in and support for the Government’s privatization efforts; (ii) act as a catalyst for foreign investment and private sector participation in Bulgaria; and (iii) help the Sponsors gain access to long-term financing.
By supporting a well managed Bulgarian production facility such as EPIQ EA, IFC would help encourage and enhance local production of high-tech devices in the electronic/semiconductor appliances manufacturing sector. The project is expected to generate significant number of new jobs along with having a spillover effect. Furthermore, it is envisaged that the appropriate terms and structuring of this investment would help encourage other lenders and investors to consider such other projects in Bulgaria. Another benefit of the proposed project to Bulgaria would be in the form of net foreign exchange earnings as the project is export oriented. |
|
| Environmental and social issues - Category B |
This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects, because a limited number of specific environmental and/or social impacts may result, which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.
To view the environmental documents for this project, click here
|
|
| Location of environmental documents in locally affected community |
| The environmental documents are available in Bulgarian language for review at the entrance of the company offices at Industrial Zone Microelectronika, 2140 Botevgrad, Bulgaria |
|
| To contact the project company, please write to: |
Mr. Nikolay Berov, Managing Director, EPIQ Electronic Assembly, Industrial Zone Microelectronika, 2140 Botevgrad, Bulgaria
phone: +359 48 969 544; fax 359 723 2436; e-mail: nbe@sd-bul.bg |
|
|
|