Project description
and objectives:
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The proposed project will partially finance the construction of a non-woven fabric (made from polypropylene) manufacturing plant located in the Tula region (200 km south-west of Moscow) with a total capacity of 10,000 tonnes per year. The majority of production will be for the hygiene sector, specifically as a component in baby diapers. Production is expected to start in the first quarter of 2008.
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Transition impact:
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The proposed project assists the entry of a globally leading producer of non-woven fabrics into Russia. The project will promote the introduction of spun-bond and spun-melt technology and the eventual modernisation of the sector as local companies strive to remain competitive. The success of the project may encourage other international non-woven producers to enter Russia and assist in the restructuring of local companies, thereby increasing local competition and aiding in the development of a market economy in Russia.
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The client:
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Avgol Rus LLC will produce non-woven fabrics for various end-users in various industries in Russia/CIS. About 80% of production will be for the hygiene sector as a component in baby diapers.
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EBRD finance:
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EBRD will provide up to EUR 18 million in an A/B syndicated loan structure.
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Total project cost:
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EUR 27 million
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Environmental impact:
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The project was screened B/1. Environmental due diligence, including a site visit by the Bank’s Environmental Specialist, confirmed that whilst there are some marginal outstanding issues that need to be addressed, overall the Company’s operations are of a very high standard and in compliance with all relevant national and EU requirements. Whilst the plant is still under construction, there are unlikely to be any significant environmental, health and safety issues associated with the operation as the spun-bonded production of plastic fabrics discharges little or no water, produces minimal air emissions, and generates no waste (all waste products are recycled back to the system). All of the outstanding issues will be included in an environmental action plan (EAP), which will form part of the Loan Agreement between EBRD and the Sponsor.
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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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Avgol Rus LLC
Mr. Achai Bonneh
Email: Achai@Avgol.com
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EBRD contact:
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Anne-Marie Brabants, Operation Leader: brabanta@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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