ANIMEX SA

Location:

Poland

Project number:

5082

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

C

Approval date:

13 Mar 2001

Status:

Completed

PSD disclosed:

28 Mar 2001

Project Description

Proposed financing for Animex and related companies for restructuring its Polish meat processing operations and balance sheet.
The project aims to restructure Animex through: (i) corporate reorganisation; (ii) divestment of non-core subsidiaries; (iii) rationalisation of production facilities; (iv) implementation of management information systems; (v) selective capital investment to improve food hygiene and operating efficiency; (vi) investment in brand development (including packaging and distribution); and (vii) balance sheet restructuring.
 
 

Transition Impact

The project is an opportunity for the Bank to participate in the restructuring of a large Polish company led by a leading Western strategic investor. The project would have a significant impact on the transition process in a number of ways.
Increased competition in the Polish meat industry would be achieved through the sponsor’s focus on improving the efficiency of plant operations, implementing new distribution arrangements and undertaking sales/marketing initiatives.
Commercialisation of a significant part of primary agriculture in Poland would be achieved through introduction of quality controls, best practice raw material sourcing methods and other linkages to pig breeding and rearing in Poland.
It would further prepare Poland for EU accession. Agriculture and the meat sector in particular are some of the most sensitive areas of discussion for EU accession.

The Client

Animex S.A. (and Animex affiliates, collectively "Animex") is Poland’s second-largest meat trading and processing company with approximately 15 per cent market share in its core businesses. Animex is listed on the Warsaw Stock Exchange and majority owned by Smithfield Foods Inc., the world’s largest integrated pork processor, which is listed on the New York Stock Exchange.

EBRD Finance

Loan to Animex of up to US$ 25 million (€27.3 million).

Project Cost

Total value of Animex syndicated loan is US$ 100 million (€109 million) in addition to US$ 50 million (€54.5 million) in sponsor-contributed equity.

Environmental Impact

The project was screened C/1, requiring an environmental audit of the company’s various facilities. Given the number of facilities and the consequent difficulties associated with auditing every facility, the due diligence was based on a detailed environmental, health and safety questionnaire. The review of the returned questionnaires, including follow-up investigations by the Bank’s environmental staff, and the discussions with Smithfield management responsible for such issues demonstrated that the facilities comply with the national requirements for environment, health and safety in line with Smithfield’s Corporate Environmental Policy. Levels of hygiene within the facilities are reportedly good, the plants are kept clean, and staff receive training in this respect. The review also showed that several of the plants are approved by the EU for the export of meat, and it is the company’s aim to bring all facilities to that level. The company will be required, in line with the EBRD’s Environmental Policy, to ensure that all facilities meet both national and EU requirements for environment, health and safety.
 

Technical Cooperation

None.

Company Contact

 
 

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

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 how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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