Provision of EUR 10 million loan to Tuyauto Gestamp Morocco SA, to support its investment in metal assembly facility in Morocco.
The Project enables the Borrower to (i) expand capacity and (ii) introduce the activity of cold stamping of metal frames, a process that occurs prior to their already existing welding and assembly processes.
ETI score: 70
The use of proceeds will enable training of young women and men to contribute the socioeconomic advance and people empowerment.
The Project will assist to the policy dialogue on a new PPP model to improve vocational training in the Moroccan automotive sector.
The Project will also introduce an innovative production process leading to competitiveness improvements.
TUYAUTO GESTAMP MOROCCO SA
Tuyauto Gestamp Morocco SA (the "Borrower") is a joint stock company established in Morocco and owned for 50% by Gestamp Automocion S.A, a listed tier-1 producer of automotive parts domiciled in Spain, and for 50% by Tuyauto S.A., a family-owned tier-1 producer of automotive parts domiciled in Morocco.
EBRD Finance Summary
The EUR 10m loan complements the outstanding loan extended to the Borrower in 2018 to finance the investment programme.
Total Project Cost
The proceeds will be used for equipment acquisition, building construction, as well as land acquisition related to the Borrower's investment programme.
The Bank is additional because of the combination of the following factors: financing structure, ability to offer follow up loans for future phases, and ability to bridge financing gap as a result of adverse market conditions due to COVID-19.
Standard setting: Client, in line with its ESG strategy, makes use of EBRD expertise on higher inclusion and gender standards and/or equal opportunities action plans.
Environmental and Social Summary
Categorised B (ESP 2014). In-house Environmental and Social (E&S) due diligence was carried out by means of review of the Project and COVID-19 Questionnaires, together with an information package supplied by the Client; review of the 2019 AESR; as well as phone interviews with the Client's Management. TGM is an existing client of the Bank (first transaction signed in 2018) and its E&S performance has been satisfactory to date as evidenced by annual reporting on environmental and social matters. The results of the 2018 ESDD indicated that there are high HSE standards at the Gestamp Corporate level, and that these standards will be replicated on the Moroccan sites. The environmental and social impacts associated with the construction and operation of a second automotive parts manufacturing plant are readily identified, and will be managed in line with the Bank's PRs by the implementation of a supplementary Environmental and Social Action Plan (ESAP). The supplementary ESAP ensures that the actions captured in the 2018 ESAP are expanded to the second plant. The supplementary ESAP is under discussion with the Client and will be agreed before signing.
The Client is a JV between Gestamp and Tuyauto, but it was confirmed that Gestamp standards will apply. Gestamp has high corporate standards in place, including a commitment to ISO14001 certification for the new sites. The Client confirmed that the same E&S Management System will apply to both activities (assembly in the first plant and cold stamping in the second plant). The 2018 ESAP actions related to PR2 (labour review by an external labour auditor, grievance mechanism, HR Policy) will be expanded to the second plant, as confirmed in the additional ESAP. Energy supply to the new plant will be provided by the grid (no air emissions), and water consumption will not exceed 5m3/day since the machinery will be equipped with closed loop systems. 100% of the non-hazardous waste (wooden pallets, cardboards, scrap metal) are recycled. The second plant is located in an industrial area, adjacent to the first plant that started production in 2019.The land has been purchased and land titles have been obtained by TGM.
The review of the COVID-19 questionnaire confirmed that TGM has measures in place to limit the spread of COVID-19 (such a minimum presence of workforce with mandatory measures relating to hygiene and physical distancing, and temporary shutdown of the first plant and the construction of the second plant). Some contracts were temporarily suspended and replaced by the government help put in place (representing 70% of salary).
The Bank will monitor implementation of the ESAP through review of annual Environmental and Social Reports (AESR) and communications with the Company as necessary.
Technical Cooperation and Grant Financing
Company Contact Information
PSD last updated
19 Nov 2020
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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).
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