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| Description of company and purpose of project |
Intercell S.A. (Intercell or the company), formed in 1990, is the second largest producer of unbleached packaging products and a leader in recycling wastepaper in Poland. It is a fully integrated company producing paper, paper sacks and single and double wall corrugated board in five plant sites throughout Poland. Intercell also operates a sack plant in Yugoslavia and is establishing a sack production facility in Russia.
The project consists of the modernization and expansion of Intercell’s operations in Poland and the establishment of a sack production facility in Russia. The project rationale is to help Intercell maintain its comparative advantage of integrated paper production in Poland and to capture market opportunities in Russia.
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| Project sponsor and major shareholders of project company |
| Intercell is controlled by the following shareholders: Intercellulosa AB (32%), a Swedish company owned by Holger Hjelm, and Inter Paper Holding AG (20%), and a company registered in Liechtenstein, owned by Ulf Linden (a Swedish national). Mr. Hjelm has over fifteen years of doing business in Poland while Mr. Linden is the former vice-chairman of the Volvo group. The other shareholders of Intercell are the State Treasury of Poland (32%), IFC (12%), the Nordic Environment Finance Corporation (2%), and Intercell Trading (2%). Intercell will sponsor the project’s Russian component and will hold a controlling interest in its Russian subsidiary. |
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| Total project cost and proposed IFC investment |
| The total project cost is estimated at $181 million equivalent. The proposed IFC investment is a $42 million A loan for IFC's own account, a $1 million equity investment in Intercell’s Russian subsidiary (to be formed as part of the proposed project) for IFC’s account, and a $60 million syndicated B loan for the account of participants. |
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| Location of project and description of site |
Intercell is headquartered in Warsaw, Poland. The project will be conducted at the company’s production facilities located in the cities of Ostroleka and Tychy. The site for the company’s Russian subsidiary is to be located in or near Moscow.
The production facilities in Poland are in the following locations:
Intercell SA
Ul.I Armii Wojska Polskiego 21
07-401 Ostroleka,
Intercell SA Tychy
ul. Przemystowa 52,
43-100, Tychy
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| Project Development Impact and IFC's Role |
The IFC role in the project includes:
- catalytic role: in addition to providing long-term finance, IFC will structure the transaction and mobilize $60 million from Polish and international financial institutions;
- technical advice: IFC helped the Company perform a pre-feasibility study for the Project and will continue to share its worldwide expertise in the pulp and paper industry; and
- IFC’s Moscow office will assist in the establishment of Intercell’s Russian subsidiary.
The development impact of this project is expected to be high:
The proposed project will fund a broad range of investments in paper, box and sack manufacturing.
It will enhance the overall competitiveness of Intercell and reduce its dependence on the domestic market. Intercell is the only significant collector of wastepaper, whose activities will be greatly enhanced by the Polish Government’s new law of disposal of packaging. The project will also help to transfer the technological know-how to Russia. |
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| 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 |
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| Location of environmental documents in locally affected community |
The ERS is disclosed at the following location:
Ostroleka Town Hall
Plac Bema 1
07-410 Ostroleka |
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| To contact the project company, please write to: |
Mr. Max Endre, Chairman of the Supervisory Board
Ul.Jagiellonska 74, 03-301
Warsaw, Poland |
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