Project description
and objectives:
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The proposed project consists of an investment of EUR 32 million to build a cable factory on a brown field site in the Yaroslavl region, some 200 km north of Moscow. The Company will employ up to 200 people. Start up is planned for 2008. This project will bring the Group closer to its customers (Nexans successfully imports cables into Russia and the CIS), and manufacture value-added products much needed for the modernisation and expansion of energy infrastructure in Russia and the CIS. The market is moving ahead in full force at an annual rate of over 7%.
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Transition impact:
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To date, only a few among the power cable industry leaders have a significant presence in Russia. Nexans will bring to the CIS market its advanced manufacturing technology and products of high and consistent quality. Locally-based producers will be enticed to improve their own product quality, master new technologies, innovate in their sales and marketing techniques, and enhance their customer-focus in the Russian market in order to compete.
Upstream, a reliable copper supply industry is critical to attract major FDI in the cable industry. Downstream, clients will be stimulated by contacts with one of the worldwide leaders. The power infrastructure sector will also benefit from a reliable supply of high quality cables.
The project will result in the cleaning of the present brown-field site. It will also promote environmental management, as it is incorporating state of the art technology to produce cable products.
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The client:
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Nexans CIS is the trading subsidiary of Nexans, established in the Russian Federation. It will be expanded into a manufacturing operation and recapitalised.
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EBRD finance:
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The EBRD proposed investment is a EUR 10 million equity capital injection in Nexans CIS.
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Total project cost:
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EUR 32 million.
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Environmental impact:
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The Project has been screened as B/0 by the EBRD requiring an Environmental Analysis of the proposed investment programme.
An environmental due diligence consisting of an Environmental Analysis was undertaken by the Bank. Benchmarking was used to assess the proposed plants performance using EU environmental standards and international available Key Production Indicators (KPI's) for the sector. The facility will be designed to meet both Russian and EU environmental and health and safety standards. The Company is also implementing an internal environmental management and audit systems and runs a robust internal environmental certification system for all of its global operations. The same standards will apply to the Russian operations as to the Groups other facilities world-wide.
The main environmental issue relates to the use of resources and any nuisance impacts on local residential areas (noise and traffic). The Company is designing the new facility to take into account the local setting and has undertaken both internal and external studies to ensure the designs mitigate potential environmental and social impacts.
- Nexans will be required to provide the Bank with an annual environmental report, and notification on any material accidents of incidents.
- The Company will conduct its business with due regard to National and EU environmental regulations and standards.
- The Company will arrange for periodic environmental audits and monitoring visits by Bank staff or appointed representatives, if and when deemed necessary.
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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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Nexans
16, rue de Monceau
75008 - Paris
France
Press
Céline Révillon
Tel.: +33 (0)1 56 69 84 12
E-mail: Celine.revillon@nexans.com
Investor relations
Michel Gédéon
Tel.: + 33 (0)1 56 69 85 31
E-mail: Michel.gedeon@nexans.com
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EBRD contact:
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Philippe Belot, Operation Leader: belotp@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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