Project description
and objectives:
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The proposed project consists of financing the long-term modernisation and
development of Somboled a.d. (the Company) mainly compromising
(i) capital investments and
(ii) product portfolio restructuring including marketing and brand development
of locally produced Serbian dairy products.
The Company is a subsidiary of Lura d.d. Croatia (96,91% share as of December
31st, 2005).
The Company's strategy is to become a market leader in niche segments of the
dairy sector with nationwide presence. As part of the turnaround process, the
Company plans to focus on improving its operating efficiency and shifting its
production towards higher value added products.
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Transition impact:
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Transition impact derives from supporting a cross border investment and
turnaround of the Serbian dairy company. In addition, backward linkages will
be created and strengthened by increased relationship with the local farming
community; The Company’s aim is to lift the average milk production per cow as
well as the quality of the milk, facilitate an increase in the size of farms
within its network and increase the number of large suppliers.
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The client:
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Somboled, a.d. Sombor, a joint stock company incorporated in Serbia and
Montenegro. The company is active in the production of milk, specialised
cheese and yoghurt drinks.
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EBRD finance:
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Corporate loan up to EUR 10.0 million to Somboled.
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Total project cost:
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EUR 23 million.
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Environmental impact:
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The project is categorised as B/1. In the process of acquiring Somboled the
Sponsor undertook an environmental audit and an environmental action plan has
been agreed. As with all Bank investments, Somboled will be required to comply
with national and applicable EU standards for environment, health and safety
and with national labour laws.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Branko Popovic, Somboled, A.D Sombor
Tel: +381 25 467 300
Email: Branko.popovic@somboled.co.yu
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EBRD contact:
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Vedrana Jelusic, Operation Leader: jelusicv@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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