CONSUMERS SKLO ZORYA

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 31654

Status Complete

Location

Ukraine

Business Sector

Manufacturing and Services

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 31654

Status Complete

Location

Ukraine

Business Sector

Manufacturing and Services

Notice Type

Private

Environmental Category

Approval Date

18 Mar 2003

Disclosure date

12 Feb 2003

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The transaction envisages support of CSZ’s investment program, which aims to increase CSZ glass plant production capacity and sales to existing customers. The project would put into operation a new (2nd) furnace, an additional set of forming lines, and upgrade the existing equipment.

Transition Impact

The proposed project will further strengthen the transition impact that CSZ has already had in the glass container industry and in end-user sectors. The glass container industry is modernising, consolidating and becoming more efficient as it seeks to emulate CSZ’s performance. This is putting increased pressure on CSZ to further improve its efficiency to maintain its lead – the underlying rationale for the proposed project. There is growing industry awareness that reaping the rewards of modernisation, as CSZ has done, and raising investment financing for modernisation, require transparent and reliable management information systems, in turn linked to sound corporate governance practices. CSZ has demonstrated and will continue to demonstrate the rewards from adopting technology, manufacturing controls and business management skills and practices that allow raw materials and energy to be used considerably more efficiently. The increasing availability of modern lightweight glass containers at lower prices has been stimulating and expanding end-user demand. It has done much to revitalise access of Ukraine’s food processors and beverage producers to traditional export markets. It has allowed producers to begin to compete head-on with foreign imports in the domestic market. It has also allowed them to introduce more efficient, high-speed filling lines and modern closures (tops/caps).

The Client

Consumers Sklo Zorya (the “Company” or “CSZ”), a closed joint stock company incorporated in Ukraine. CSZ is Ukraine’s leading manufacturer of premium-quality glass containers with a domestic market share by volume of 19% in 2001 and in 2002.

EBRD Finance

US$ 13 million term loan to finance part of the Company’s capital expenditures for new glass making equipment.

Project Cost

US$ 20 million.

Environmental Impact

The project was screened B/1, requiring an environmental audit and an environmental analysis of the impacts associated with the expansion program. Audit information was provided through due diligence performed and through annual environmental reports submitted to the Bank. The Bank contracted Continental Glass Engineering firm from Germany, which undertook the environmental analysis as part of their technical due diligence on the expansion program following a separate Terms of Reference provided by the Bank. A number of potential environmental issues were identified including air emissions from the batch plant, furnace and annealing plant, effluent emissions contaminated with oils and solids and noise emissions. Mitigating measures have been proposed and will be incorporated into an updated environmental action plan once CSZ has finalised the specifications for the new equipment to be installed under the expansion program. Existing facilities already comply with both national and EU standards and the expansion program is designed to comply likewise with these standards.

Technical Cooperation

None.

Company Contact

Robert Reeves, Chief Executive Officer
Email: rreeves@sklozorya.com
Stanislav Savinsky, General Director
Email: gdir@sklozorya.com

Transition impact

ETI Score:60

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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