Provision of long-term financing to Aluflexpack Novi d.o.o., part of Aluflexpack Group and ultimately owned by Montana Tech Components AG, together with a local commercial bank.
The loan proceeds are used to finance the company's capital expenditure into new production capacity that will further support development plans.
ETI score: 61
The primary transition quality is Inclusive as the project focuses on promoting training and skills development through creating work-based learning opportunities for young people and establishing cooperation with local technical universities and vocational schools. The secondary transition quality is Competitive as the project further supports the cimpany's capex programme aimed at expanding production capacities and improving overall efficiency and profitability.
ALUFLEXPACK NOVI DOO
Aluflexpack, a Croatian company is a niche player in flexible packaging segment in Europe producing containers, lids and other aluminium based products for food, pet food, pharmaceutical, confectionary and dairy industry.
Since December 2012, it is fully owned by Montana Tech Components AG, a Swiss-Austrian diversified industrial group.
EBRD Finance Summary
EUR 12.5 million
Total Project Cost
EUR 35.0 million
Environmental and Social Summary
Category B. Environmental and social due diligence (ESDD) was carried out in-house via E&S Questionnaire review and results of the previous projects' ESDD. The existing ESAP was updated to reflect additional impacts associated with the new project. The project is consistent with the GET approach, and the GET share is 4% related to EUR 1 mln capex used for the solvent recovery upgrade.
The E&S impacts of the new production lines at the AFP plant in Umag allowing a 50% capacity increase and respective solvent recovery plant output are associated with the site specific E&S issues that can be readily identified. The Project's E&S impacts are mainly related to air emissions (particulates, VOC, GHG, etc.), packaging waste and solvents management as well as occupational health and safety, labour policies and stakeholder engagement practices. The ESDD of the original AFP Project in 2012 and of Project Herakles in 2016 resulted in development of an ESAP to address the identified issues. The Company provided regular and timely updates on ESAP implementation as part of annual reporting. Umag operations are eligible under the EU Industrial Emissions Directive to comply with the BAT performance levels specified in the BREF for the Surface Treatment Using Organic Solvents, i.e. the VOC concentrations are within the limits, but current environmental permit will need to be updated to reflect capacity increase. Associated with the new project 30% solvents consumption increase will be matched by the same increase in recovered amounts. The existing ESAP was updated to add measures specific to the new production line in Umag.
The Company will continue to provide the Bank with annual environmental and social reports (AESR), including updates on the ESAP implementation. The Bank will evaluate the Project's environmental and social performance in accordance with the Bank's PR's through reviewing the Client reports and undertaking periodic monitoring visits when deemed appropriate.
Technical Cooperation and Grant Financing
Company Contact Information
+385 52 703 348
+385 52 741 217
Dr. F. Tudmana 25, Murvica 23241 Policnik (ZD), HR Croatia
The project supported capex expansion, which enabled introduction of high value-added products and contributed to efficiency improvements amid better material flow through new production facilities. The project was implemented on time and within the schedule.
The Project also ensured adherence to strict environmental, energy-efficiency and social standards. The Company is on track with implementation of the Environmental and Social Action Plan. A number of investments into the equipment upgrades and new capex are planned for 2022/23 to bring environmental performance in full compliance with national/EU norms, including new treatment facility for storm and wastewater at Drnis, asbestos containing material removal at Zadar, solid waste management facilities upgrade at Drnis, fire prevention system replacement to an automatic one at Zadar, among others.
As a part of Transition impact, the Project has contributed to overall competition by expanding the production capacities of the Company thus contributing to efficiency improvements.
In addition, the internship and training scheme was implemented and continues to be active. The effort has led to 26 trainees being recruited to the dual education vocational training programme, and will be awarded with a set of lifetime skills.
PSD last updated
29 Sep 2022
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Environmental and Social Policy (ESP)
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More information on the EBRD’s practices in this regard is set out in the ESP.
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The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
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Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email email@example.com to get guidance and more information on IPAM and how to submit a request.