Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

20 Nov 2001



PSD disclosed:

19 Oct 2001

Project Description

Post-acquisition financing of Stinol, a leading Russian manufacturer of cooling home appliances. The company is located in Lipetsk, 400km south of Moscow. The EBRD’s investment will facilitate Merloni to modernise the facilities at Stinol as well as to expand into new and more modern product lines and washing machines.

Transition Impact

With its investment, the Bank will support a committed strategic investor which has the experience to carry out a restructuring and modernisation programme at Stinol. Stinol would act as a model for the sector thereby addressing a key transition challenge for the Russian industry. The full restructuring/modernisation process is expected to take a number of years. During this period, Merloni intends to adopt best industry practices in all aspects of Stinol’s operations. This programme will enhance efficiency, implement skills transfer and know-how in areas of modern production, quality control methods, corporate management, distribution, marketing and after-sales service.
Higher industry, environmental and governance standards at Stinol will enhance competition in the sector as other producers will need to emulate to contend. Through the introduction of newer, better performing and environmentally friendlier locally manufactured products, In addition, the development of Merloni’s after-sales service network has the potential to trigger significant improvements in the quality of service in the home appliance sector in both Russia and the CIS. The project will also stimulate competitive behaviour among Stinol’s local suppliers prompting higher efficiency in the supply chain.

The Client

Stinol is the largest refrigerator plant in the CIS, with a capacity of 1 million units per year. The plant employs around 6,000 people and accounted for approximately 35 per cent of Russia’s refrigerator output in 2000. Stinol was recently acquired by Merloni Elettrodomestici, a major European household appliance manufacturer and is currently being modernised. In the next four years, up to €60 million is going to be invested into restructuring, modernisation and expansion of Stinol’s production facilities.
Merloni is the third largest home appliance producer in Europe. It employs 13,300 people in 21 subsidiaries globally and has 12 plants in Italy, France, Portugal, Turkey, Poland and now Russia. Merloni has a 10 per cent market share in Europe and is a market leader in Russia. Merloni’s 2000 revenues were €1,647 million and net profit €42 million.

EBRD Finance

€13.6 million in equity financing by acquiring existing shares.

Project Cost

€13.6 million.

Environmental Impact

The Project was screened B/1, requiring an Environmental Analysis and audit, which was undertaken by international environmental consultants. A member of the Bank’s Environmental Appraisal Unit also carried out a site visit to the company. The investigations confirm that the facility is in full compliance with all legal requirements and will meet all applicable EU standards. Stinol will also adopt environmental management guidelines and standards consistent with Merloni’s International Environmental Performance Criteria. The company 's investment of some US$ 1 million to replace ozone-depleting substances utilised in the manufacture of refrigerators has had a significant beneficial impact. There is also strong potential to act as a positive role model to suppliers and other industry operators in a region that has suffered significant environmental pollution. Stinol is currently seeking certification of the international environmental standard ISO 14001. The company recently hosted a major environmental conference, attended by some 170 participants, to attempt to resolve issues of industrial development and environmental safety in the Lipetsk region.

Technical Cooperation


Company Contact


Business opportunities

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