Rokiskio Suris

Project Description

Financing of Rokiskio Suris’s capital expenditure programme to upgrade and expand production capacity and to increase productivity.

The operation will enable Rokiskio Suris to: (i) increase productivity, production capacity and its milk purchasing infrastructure for its main product, aged (fermented) cheese; and (ii) improve environmental performance through the upgrading of its lactose and whey (by-product) processing treatment.

Transition Impact

The project will:

• facilitate market expansion through: (i) support for modernisation and restructuring in the dairy farming sector; (ii) investments in production facilities that enhance international competitiveness; (iii) upgrading marketing and distribution capabilities; and
• set a good example of corporate governance, as a result of substantial enhancements in the company associated with the Bank’s investment.

The Client

AB Rokiskio Suris is the largest dairy processor in Lithuania and the largest cheese producer in the Baltic states.

EBRD Finance

An equity investment of up to US$ 14 million (EUR 15.5 million) in Rokiskio Suris. This consists of an immediate investment of up to US$ 11.25 million, of which up to US$ 2.5 million is from a private regional investment fund.

Project Cost

US$ 16.5 million (EUR 18.2 million)

Environmental Impact

This operation was screened B/1, requiring an environmental audit and an environmental analysis. The audit and analysis were included as part of the general due diligence conducted on this project, and the resulting report confirmed the company as being compliant with both Lithuanian and European Union environmental requirements and standards, excluding the following:

• waste-water treatment requires improvement to meet the relevant requirements;
• not all of the company’s water supplies are currently licensed;
• one of the company’s storage facilities does not meet the relevant fire protection standards;
• rainwater sewage treatment and hazardous materials storage at the Utenos Pienas facility need to be improved.

 

The company will incorporate solutions to the above problems into an Environmental Action Plan (EAP) to be agreed with the Bank. The EAP will assist the company in continuing the trend of environmental improvements, which it has instituted in a number of other areas. It will also ensure that the company complies with the relevant national and EU standards. The company will report annually to the Bank on the implementation of the EAP.

Technical Cooperation

TC funding is to be used for technical, marketing, environmental and regulatory due diligence.

 

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