JSC Gostomel Glass Factory (the Company) is continuing its major phased development project to enhance profitability by increasing production capacity, improving product quality and operation standards. The proposed project consists of the implementation of the second phase of the Company's long term strategic business plan. The objective of the Project is a 30% increase in production capacities via erection of the fourth furnace equipped with highly productive top-notch equipment and know-how. With the fourth furnace installed, the Company plans to satisfy the demand for beer bottles in Ukraine as well as regain its market share in Russia. The focus on modern technology and international quality standards will allow the company to offer best conditions to its customers.
The project will demonstrate that long-term financing is available in Ukraine to local companies that are committed to improving and adopting international standards.
The project will contribute to a more competitive glass packaging sector. It will help meet the potential threat from foreign competition, enabling local glass container producers to meet a large proportion of the anticipated increase in demand from the beer brewery companies active in the region.
JSC Gostomel Glass Factory is the largest producer of glass packaging for the food and beverage sector in Ukraine and one of the largest in the CIS. GGF is the only glass container manufacturer in Ukraine to have ISO 9001 certification for the quality assurance system of its products.
US$ 17 million (€14.8 million) of a long-term loan facility out of which up to US$ 12 million (€ 10.4 million) may be syndicated on a best-efforts basis.
About US$ 20 million (€17.9 million).
In the context of the Bank's very recent loan to JSC Gostomel Glass Factory an independent environmental audit and analysis were undertaken in November 2001 and an environmental action plan ("EAP") agreed with the Company. The action plan included a number of points such as the clean-up of contamination surrounding oil storage areas, the construction of a precipitation water sewage. The Company is in the process of implementing the action plan and has provided reports to the Bank on progress made. For the new loan the Company is required to provide confirmation that the construction of the new furnace and the furnace itself will meet relevant national and EU standards for environment, health and safety. The Company will continue to provide the Bank with annual reporting on the implementation of the EAP and any other environment, health and safety issues affecting the Company's operations.
Alexander Zhyvotovsky, Financial Director
Tel: + 380 4497 62337
Fax: + 380 4497 31135
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