DFF - Teraplast 1

Location:

Romania

Project number:

49305

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

05 Mar 2019

Status:

Signed

PSD disclosed:

03 Dec 2019

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD has been deferred in accordance with paragraph 1.4.4 of the Directive of Access to Information.

Project Description

The EBRD has provided senior loans of up to EUR 16 million to two companies within TeraPlast Group (the "Group"), to support the expansion of the Group steel segment business in Romania and the CEE region:

(i)         Wetterbest SRL (former Depaco SRL): EUR 5 million for financing a new roof systems production and storage facility in Romania;

(ii)        TeraSteel: EUR 11 million for the refinancing of the costs with setting-up the operations in Serbia for metallic sandwich panels production and developing the CEE presence of the company;

Project Objectives

Support the expansion of TeraPlast Group steel segment business in Romania and CEE area and support work-based learning opportunities to local youth in Romania as well as improve Group's Corporate Governance.

Transition Impact

ETI score: 80

This project will make a significant contribution to additional technological skills transfer via enhance its training offer in close collaboration with established local training providers to offer accredited dual learning and other work-based learning opportunities to local youth. The company also engaged to improve its Corporate Governance by implementing various measures directed at improving company's procedures, internal regulations and transparency.

Client Information

WETTERBEST SRL

TeraPlast Group is one of the leading manufacturers of materials for construction and installation markets in Romania, with production sites in two countries, Romania and Serbia. The production of the Group is structured in two main business lines: plastic division and steel division (which include metallic sandwich panel and metallic roofing activities).

EBRD Finance Summary

EUR 5,000,000.00

EBRD Finance Summary:

Wetterbest SRL: EUR 5,000,000

TeraSteel CEE: EUR 11,000,000

 

 

Total Project Cost

EUR 9,200,000.00

Total Project Cost:

Wetterbest SRL: EUR 9,200,000

TeraSteel CEE: EUR 19,400,000

Environmental and Social Summary

Categorised B (2014 ESP). The environmental and social issues associated with balance sheet refinancing and provision of capex addressing the expansion of TeraPlast Group's steel segment business in Romania and the CEE area can be readily identified and managed. Due diligence, carried out by ESD, focused on TeraPlast Group's existing management systems, current facilities and operations. An ESAP has been developed and agreed with the Company to ensure the project complies with the Bank's PRs.

The ESDD included a review of the E&S Questionnaire, the Company's policies and procedures, a site visit to the production facilities in Saratel and Bistrita and interviews with relevant management staff. Identified issues that need to be addressed include a lack of formal corporate grievance mechanism; inadequate on-site traffic and pedestrian management, and exceedance of permitted noise and dust limits in the Romanian industrial park; and outstanding environmental and other permits for the new facility, and it's inclusion in the existing IMS system of the Company.

As stated above, an ESAP has been developed, and agreed with the Company to address these issues. The specific measures include the inclusion of a new facility into the existing IMS; obtaining the required permits and development of a Construction Environmental and Social Management Plan for the new facility prior to construction; development of a Traffic Management Plan for the Romanian industrial park; bringing and maintaining the microclimate working conditions within permissible levels in all the Company's facilities; and the development of a formal corporate grievance mechanism.

Technical Cooperation and Grant Financing

None.

Company Contact Information

Ioana Birta
ioana.birta@teraplast.ro
+40 725 809 498
www.teraplast.ro
Saratel village, Sieu-Magherus commune, Bistrita-Nasaud county, DN 15A, km 45+500, 427301, Romania

PSD last updated

12 Dec 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.