Korozo, which is a leading flexible packaging company in Turkey, has acquired a majority stake of Vitra, a Belgian food flexible packaging company.
The Bank's proceeds will support expanding Korozo's export markets, stregthening its export capability and increasing its product range.
ETI score: 60
The project is fully in line with the transition impact objectives that were established at the initial project approval, in supporting Korozo's successful restructuring and demonstration of improved standards.
AEGLE PACKAGING SARL
Korozo Ambalaj San. ve Tic. A.S. is a joint stock company incorporated in Turkey. With ten manufacturing facilities across the country, it is the largest flexible packaging producer in Turkey and among the leading ones in Europe.
Environmental and Social Summary
Categorised B (ESP 2014). Korozo's environmental and social performance has been thoroughly assessed by external consultants as part of the E&S due diligence conducted for the previous project. An E&S Action Plan (ESAP) has been agreed, and Korozo has demonstrated compliance with EBRD's E&S Policy and satisfactory reporting thus far. The acquisition of the flexible packaging facility located in Belgium has been subject to a legal and technical due diligence led by Korozo which included E&S aspects. Additionally, Korozo completed EBRD's ESDD questionnaire in relation to the targeted acquisition and submitted it to ESD for review.
Due diligence has demonstrated that the Belgian facility is generally compliant with EBRD's Performance Requirements as well as the EU directives and associated Best Available Techniques Reference documents. Korozo has requested additional investigations to be undertaken, namely related to asbestos inventory and a soil survey. These actions form part of the legal documentation and are CPs to the acquisition. Korozo operates globally to standards which meet the Bank's Performance Requirements. These standards are going to be implemented to the Belgian facility, which Korozo has committed to through the updated E&S Action Plan.
The ESAP agreed under the previous equity transaction has been updated to include the new acquisition, and was agreed with Korozo . The Company's compliance and E&S performance will be monitored through the review of annual reports submitted by Korozo as well as site visits if deemed necessary.
Technical Cooperation and Grant Financing
Company Contact Information
The Project to co-invest in a buyout of Korozo Ambalaj AS was closed in March 2017. In October 2019, Korozo acquired Vitra, a Belgian based company. The Company operates ten facilities in western Turkey, including the Corlu plant built in 2017. The factory is the largest of its kind and is located in a special economic zone. Its products are exported to 80 countries worldwide.
As part of Transition impact, the Project contributed to an overall competition through an adoption of improved corporate governance practices. The Company has achieved many benchmarks set out including succesful restructuring and demonstration of improved standards.
The Company employs around 1,700 people; with the labour policies and procedures being compatible with the international standards. The latest Environmental and Social Questionnaire and the ESAP update confirmed that the Client's performance is progressing in line with EBRD's standards and requirements.
PSD last updated
08 Mar 2022
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