|
|  |
| Posuda LLC |
|
| Summary of Proposed Investment |
| This Summary of Proposed Investment 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. Board dates are estimates only. |
| Project number | 26591 |
| Company name | Posuda LLC |
| Country | Russian Federation |
| Sector | Nonmetallic Mineral Product Manufacturing |
| Environmental category | B |
| Department | Global Manufacturing & Services |
| Status | Active |
|
| Date SPI disclosed | March 14, 2008 |
| Projected board date | April 15, 2008 |
| Previous Events | Invested: June 11, 2008
Signed: May 20, 2008
Approved: May 13, 2008 |
|
| View Environmental & Social Review Summary (ESRS), click here |
|
| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| The project involves the expansion of a glassware plant Posuda Ltd (Posuda or the company) located in Nizhny Novgorod region, 500 km from Moscow. Posuda was established in 2000 and acquired at the end of 2003 by the Sisecam Group from Turkey (Sisecam or the sponsor), the leading glass manufacturer in Turkey and a major player in the Russian glassware market. Sisecam Group is a long-standing IFC client. |
|
| Project sponsor and major shareholders of project company |
Sisecam, the sponsor, is comprised of T. Sise ve Cam Fabrikalari A.S. (TSCFAS), the Holding company, and its 40 affiliates/subsidiaries in which TSCFAS owns a majority shareholding and/or effectively controls their management. TSCFAS was established 70 years ago in Turkey by Turkiye Is Bankasi A.S. (Isbank), one of the largest private commercial banks in Turkey. Currently, Isbank has a controlling interest in the Sisecam Group and owns 66% of its capital. The Group companies are engaged in the production and sales of a variety of glass products and is comprised of four divisions producing flat glass, glassware, glass packaging and glass related chemicals. Sisecam is the largest player in the domestic glass market In Turkey and a major exporter.
Posuda is currently wholly-owned by Pasabahce Investment BV, a financing company domiciled in Netherlands. Pasabahce Investment BV is fully owned by Pasabahce Cam, which in turn is a subsidiary of Sisecam (65% belonging to TSCFAS Holding and the remainder by other Sisecam Group companies). |
| Total project cost and amount and nature of IFC's investment |
| The total project cost is estimated at around $80 million, including the construction of a new 120 tpd furnace, 5 reconditioned glassware machines supplied by Pasabahce, acquisition of a factory building from Bor Glassworks (BGW), the construction of a new warehouse and soft costs (working capital, interest and contingencies). The sponsor has approached IFC for an A loan of up to $40 million which represents 50% of the project cost. |
| Location of project and description of site |
| Posuda plant is located in the town of Bor, Nizhny Novgorod region. Access to Posuda is by pre-existing site roads in BGW. Posuda’s electric power and natural gas supply systems are already on site being available from BGW. |
|
| Anticipated development impact of the project |
| The development impact of this investment is expected to be high since it involves the transfer of modern production methods by Sisecam to Russia. It will also support direct and indirect employment in the town of Bor, Nizhny Novgorod region, where Posuda is one of the two major employers, the other being a former IFC client, BGW. Further, Sisecam will provide training to local staff on best practice production techniques as well as transfer glassware management skills. The project is also expected to have a positive impact on the environment because the new furnace consumes less energy resulting in cost savings and cleaner production. Finally, Posuda will raise industry standards producing high quality products at competitive prices thus substituting imports. |
 |
| IFC's expected development contribution |
| The Posuda project is one of several in a series of South South investments undertaken by Sisecam with IFC. The project fits well with IFC’s strategy to support sustainable growth and economic diversification in Russia through investments in the real sector, including in the glassware industry. This foreign direct investment by Sisecam will further help promote economic cooperation between Turkey and Russia as well as neighboring countries through exports. IFC’s involvement is also expected to assist the company in the area of environmental standards. |
| Environmental and social issues - Category B |
This is a Category B project according to IFC’s Environmental and Social Review Procedure (ESRP) because the project has limited potential adverse social and environmental impacts that are few in number, site-specific, largely reversible and may be readily mitigated. Environmental, social, health and safety issues associated with this project include:
- Air emissions control, and effluent and waste management including monitoring;
- Cumulative impacts on ambient air conditions due to the presence of industrial plants in the area;
- Housekeeping and occupational health and safety issues;
- Corporate capacity in environmental management; and
- Sustainable community relations and initiatives.
Further details are provided in the Environmental and Social Review Summary available separately with this document as well as on IFC’s website. |
|
| For inquiries about the project, contact: |
Ms.Aytac Mutluguller
Finance Director
212-3503480
212-3505036
Is Kuleleri Kule 3, 34330 4.
Levent, Istanbul |
|
| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
| Local access of project documentation |
Posuda Ltd 606443
Nizhegorodsky Region,
Bor Steklozavodskoe shosse,
16a Russia |
|
|
|
|