Aluflexpack III

Location:

Croatia

Project number:

50035

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

23 May 2018

Status:

Disbursing

PSD disclosed:

30 Sep 2019

Translated version of this PSD: Croatian

Project Description

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.

Project Objectives

The loan proceeds are used to finance the company's capital expenditure into new production capacity that will further support development plans.

Transition Impact

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.

Client Information

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 12,500,000.00

Total Project Cost

EUR 35,000,000.00

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

None.

Company Contact Information

Johannes Steurer
johannes.steurer@afp.hr
+385 52 703 348
+385 52 741 217
www.afp.hr
Dr. F. Tudmana 25, Murvica 23241 Policnik (ZD), HR # Croatia

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