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| Description of company and purpose of project |
| EPIQ Group (the Group or the company) is a contract electronics manufacturer (CEM) focusing on the automotive industry. The Group’s 100% Bulgarian subsidiary, EPIQ Bulgaria, is an existing IFC client since 2001. The proposed project is to finance partially the 2005-2007 expansion and working capital requirements of the Group’s subsidiaries, in Bulgaria and Mexico, for a total project cost of €43.0 million. |
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| Project sponsor and major shareholders of project company |
The sponsor is ELEX NV (“ELEX”), a Belgian group currently wholly owned by its two co-founders:
- Mr. Roland Duchâtelet (60%), Chairman; and
- Mr. Rudi de Winter (40%). ELEX has a strategic focus on being an active investor in specialized semiconductor and contract electronic manufacturing companies. In addition to EPIQ, ELEX currently comprises various companies, including Melexis NV, X-FAB, and SensorNite.
EPIQ is 75% owned by ELEX. The remaining 25% is listed on Euronext Brussels. |
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| Total project cost and proposed IFC investment |
| The total project cost is estimated at €43 million. The proposed IFC investment is a loan of €20 million, of which €5 million might have a conversion feature. The remaining €23 million of the project cost will be financed by internal cash generation of the Group. |
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| Location of project and description of site |
| The project is to partially finance the expansion and working capital requirements in EPIQ’s facility in Botevgrad in Bulgaria and in Guadalajara in Mexico. The expansion and working capital plan of the Group also includes some minor investments in the Czech Republic. |
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| Project Development Impact and IFC's Role |
The project will enable a leading contract electronics manufacturer in the automotive sector in Western Europe to modernize and expand its operations in Bulgaria and Mexico. The Project will add to the high skill base of both countries through the transfer of state of the art technologies.
The project will have a significant positive impact on the environment as the sensors produced by the Group will be used in diesel cars in Europe to monitor the emission of polluting gases and improve fuel efficiency. These sensors will enable automobile manufacturers meet stringent environmental regulations (Euro IV and Euro V) for polluting gas emissions in the European Union. The Project will also have a positive impact on the safety of automobiles as some of the products contemplated in the Project will be used in anti-lock braking systems.
The IFC loan is crucial to support the Group in its implementation of its three-year business plan investment program as its ability to raise financing locally in Bulgaria and Mexico is limited. |
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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 social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical, environmental and social information submitted by the project sponsor, and visits to manufacturing plants in Botevgrad and Guadalajara. The following potential environment, health and safety and social impacts of the projects were analyzed.
- Environmental Management Systems
- Occupational Health and Safety Management
- Waste water and air emissions
- Hazardous material handling and disposal
- Solid waste management.
- Labor issues
To view the environmental documents for this project, click here |
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| Location of environmental documents in locally affected community |
| Environmental documentation will be made available at The Group’s plants in Botevgrad, Bulgaria and Guadalajara, Mexico. |
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| To contact the project company, please write to: |
Alexander Verhees, Joint CEO / CFO
Epiq NV, Transportstaat 1, B-3980 Tessenderlo, Belgium
E-mail: avh@epiq.be |
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