Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

05 Apr 2005



PSD disclosed:

04 Mar 2005

Project Description

The proposed investment project is with Stirom SA, largest Romanian glass manufacturer, based in Bucharest, Romania. Yioula Glassworks of Greece acquired Stirom in 2003 and commenced a restructuring and modernisation effort.

Yioula is seeking the Bank’s support to complete the post-acquisition restructuring process, to proceed with the expansion of the Company’s glass container plant and possibly to support its further regional expansion, through:

(a) Phase 1
Refurbishment of one furnace and other production and distribution investments. The project will also bring considerable energy savings and operational improvements, principally via lowering costs, better utilisation of capacity and plant specialisation. It will also aim to modernise its packaging processes and warehouse facilities.

(b) Phase II
To be utilised either to (i) refurbish an additional furnace or (ii) to provide acquisition finance for further regional expansion.

Transition Impact

Transition impact of the proposed project is expected to be derived from the following:

  • Strong demonstration effect through successful restructuring post acquisition of an existing operation. The proposed transaction will contribute to modernisation of the plant via refurbishment and restructuring investment programmes that will bring the quality of the assets, human resources and processes up to standard seen in the sector in more mature markets. It will be the first investment and turnaround project in the Romanian glass container sector which to date has not seen any foreign direct investment
  • Demonstration effect of new replicable behaviour/activities, transfer of know-how and overall improved corporate governance. Stirom provides a strong demonstration of the benefits of sound and transparent business practice, , improvement in quality standards, profitability and regained customers
  • Contribution to market development, enhanced competition and consumer benefits: The Project will enable a leading food-packaging manufacturer to maintain expansion in a growing and dynamic market and ensure that it continues to be a competitive player in its market
  • The project is consistent with the Bank’s Energy Policy (BDS00-010) which calls on the Bank to “prioritise projects … on the basis of their contribution to improved energy efficiency” and to “support investments in the modernisation of energy-intensive industries”. The project fully meets these criteria, as it involves reduction of energy and maintenance costs, improvements in the general reliability of the plant and improvements in the plant availability.

The Client

Stirom SA Romania, a glass container producer, located in Bucharest, Romania, subsidiary of Yioula SA, the largest producer of food and beverage containers and machine-made glass tableware in Greece. Stirom is a joint stock company, listed on the Romanian RASDAQ Stock Exchange.

EBRD Finance

Up to EUR 20 million senior secured loan for investment purposes with full corporate guarantee from Yioula.

Project Cost

EUR 44 million.

Environmental Impact

The project was screened B/1 requiring an environmental audit and an environmental analysis.

These studies were carried out by independent environmental consultants in November 2004. The general conclusion of the consultants was that environment, health and safety issues have been well managed by the Company. Stirom has the required environmental permits to operate and the compliance programme including in its authorisation has almost been completed.

Some issues related to air emissions, hazardous substances and energy conservation were noted by the consultants and actions to address these issues have been incorporated into an environmental action plan. The action plan has been reviewed and agreed by the Company, implementation of which should ensure compliance with both national and relevant EU environment, health and safety standards. Key amongst the actions required is the need to apply for an integrated permit to ensure compliance with the EU's IPPC Directive.

In accordance with national and Bank requirements, a public announcement on the project was in a newspaper, presenting information on the project, and inviting people to express any concerns. The Company will provide the Bank with an annual environmental report.

Technical Cooperation


Company Contact

George Fragoulis,

Yioula Group’s CFO

5 Orizomylon Street
122 44 Aegaleo

Tel: + 30 210 540 3415
Fax: + 30 210 544 2421


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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Text of the PIP

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