ArcelorMittal Skopje - Working Capital and Capex

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 35402

Status Complete

Location

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 35402

Status Complete

Location

Business Sector

Manufacturing and Services

Notice Type

Private

Environmental Category

Approval Date

26 Jul 2005

Disclosure date

24 Jun 2005

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 proposed project is for working capital and energy efficiency investments at Mittal Steel Skopje. This will enable the client to develop this business based on purchasing semi-finished intermediate steel products for re-rolling. The energy efficiency measures will consist of the purchase and the installation of steam boilers and the switch from oil firing to natural gas in the hot-rolling mill.

Transition Impact

Sources of transition impact would be:

Restructuring
Mittal Steel has a proven track record of significantly improving within a short period of time the operational practices at poorly performing plants. Mittal Steel maintains for all its operations a Knowledge Integration Programme which enables Mittal Steel managers to share best practice management experience between plants belonging to the group. This will facilitate knowledge transfer to the local economy. A further element would be the energy efficiency measures which would help to reduce the energy intensity of the operations
Corporate governance
The rolling mills are now majority owned by Mittal Steel, one of the major players in the global steel industry. Mittal Steel will introduce international accounting standards (US GAAP), introduce an environmental action plan and will generally take measures to improve practices on the procurement and sales sides.

The Client

Mittal Steel Skopje, a company which majority owns a hot-rolling and a cold-rolling plant producing steel hot and cold rolled coils as well as galvanised and prepainted steel. The Company is 100% owned by Mittal Steel Company N.V. which has recently become the largest steel company in the world with sales of USD 31.2 billion and steel shipments of 58 million tonnes in 2004.

EBRD Finance

Loan, EUR 25 million.

Project Cost

EUR 25 million.

Environmental Impact

The environmental due diligence, undertaken by independent consultants, has not revealed any significant environmental problems. However, there were a number of issues which had to be mitigated by the implementation of the agreed Environmental Action Plan (e. g. upgrading waste water treatment and water management systems, investments to improve hazardous and industrial waste management and storage, improvements to occupational health and safety management and training). These actions help to bring the company into full compliance with national requirements and achieve a higher degree of compliance with applicable EU standards. A part of the loan was spent on energy efficiency investments which also had significant environmental and health and safety benefits (e. g. pickling line refurbishment, reheating furnace fuel switch). The implementation of the EAP is monitored by the Bank.

As of April 2009, the following progress has been made on the EAP: The Environmental Management System was certified according to ISO 14001 in October 2008, the company implemented chromium-free surface treatment and plans to have its health and safety management system certified in 2009. The company is implementing a solid waste management system. Delays have occurred in upgrading the wastewater treatment plant, which is shared with other companies; however, this will completed by 2011. In May 2009 the Company received three Corporate Social Responsibility Awards from the Ministry of Economy for its contribution in the domain of environment, relations with employees and investment in the community.

Technical Cooperation

An energy efficiency audit has been performed which was financed under an existing framework contract, funded by the CEI, Central European Initiative (Italy).

Company Contact

Mr Rajiv Bhatnagar

Mittal Steel Skopje

Tel: +389 2 3288 200.

Transition impact

ETI Score:130

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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