Project description
and objectives:
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Finance for JSC Gostomel Glass Factory (GGF), a leading manufacturer of glass containers. The company is planning a major phased development project to enhance profitability by increasing production capacity and improving product quality and operation standards.
The Project consists of the implementation of Phase 1 of the company's long term strategic business plan:
- Refurbishment of a glass furnace;
- replacement of glass forming machines;
- installation of quality control equipment;
- implementation of international operating and management standards, e.g., certification of ISO 9000.
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Transition impact:
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- The project will demonstrate that long-term financing is available in Ukraine to companies that are committed to improving and adopting international standards.
- The project will contribute to a more competitive packaging sector. It will help meet the potential threat from foreign competition, enabling local glass container producers to meet a large proportion of the anticipated increase in demand from the food and drink manufacturers.
- GGF will further improve its business and operational standards, e.g., by achieving ISO 9000 certification.
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The client:
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GGF is the largest producer of glass packaging for the food and beverage sector in Ukraine and one of the largest in the CIS. GGF is the only glass container manufacturer in Ukraine to have ISO 9001 certification for the quality assurance system of its products.
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EBRD finance:
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Long-term loan facility of US$ 12 million (€13.7 million).
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Total project cost:
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US$ 15 million (€17 million).
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Environmental impact:
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The operation was screened B/1, requiring an environmental audit and an environmental analysis. Independent environmental consultants have been retained to undertake the required work. The company will be required to operate in accordance with national and relevant EU/World Bank standards. An environmental action plan was developed to address them. It should also be noted that the company has undertaken a considerable amount of work on energy efficiency measures. Consultants, funded through a USAID programme, have assisted the Company in preparing a comprehensive energy efficiency programme, a portion of which the company has financed from its own resources. Additional financing, for energy efficiency, has also been received from the first Ukrainian energy performance contracting company, UkrEsco and others.
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Technical
cooperation:
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TC funds were utilised for assistance in financial, technical and environmental due diligence for the Bank.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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EBRD contact:
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Felix Potishman, Operation Leader: potishmf@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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