Translated version of this PSD: Polish
The EBRD is providing a long-term loan of up to EUR 30 million to Arctic Paper S.A. (the "Company" or "Arctic Paper"), one of the leading European producers of bulky book paper and high-quality graphic paper headquartered and managed out of Poland and production plants located in Poland and Sweden.
EBRD loan will be used by the Company to finance investments into resource and operating efficiency improvements as well as capacity expansion in Poland. These will lead to increased competitiveness of Arctic Paper in the European graphic paper market.
In addition the operation will support restructuring of the balance sheet of the Company through extension of maturities of the existing short-term debt as part of a wider restructuring package alongside commercial banks and a bond programme.
The main source of transition impact is expected to be derived from the demonstration of new replicable behaviour and activities through implementation of investment programme in the Polish mill of the Group that will include energy and resource efficiency investments.
ARCTIC PAPER SA
Arctic Paper Group is a leading European producer in terms of production volume of bulky book paper, offering a broad range of products in the segment and one of the leading producers of highquality graphic paper in Europe. Currently, Arctic Paper operates one paper mill in Poland and two mils in Sweden with total paper capacity of 705,000 tons p.a. The company also owns controlling stake of Rottneros AB, a Swedish pulp production company operating 2 pulp mills with 400,000 tons production capacity. In 2015 the Company generated consolidated sales of PLN 2,900 million employing a workforce of approximately 1,770.
EBRD Finance Summary
Total Project Cost
Environmental and Social Summary
Categorised B. Environmental and social issues associated with the project are site specific and can be readily assessed and mitigated as part of an Environmental and Social Due Diligence (ESDD). A fit for purpose ESDD was undertaken by the Bank of the Company.
An independent consultant undertook the ESDD and confirmed that the Company has the capacity to fully implement the Bank's Performance Requirements (PRs), and is compliant with National and EU legislation as well as all the relevant Bank PRs. The company has a dedicated EHS manager and is certified to ISO 14001 and OHSAS 18001.
The location of the plant is environmentally sensitive and the region is of great importance for waterrelated birds, both breeding and migratory. In all 9 Natura 2000 sites are located nearby on the Polish and German border, including Special Areas of Conservation (SACs) and Special Protection Areas (SPAs). All the Natura 2000 areas are designated to protect water dependent habitats and species of Odra and Warta rivers floodplains. The plant itself is located in the Warta River valley and borders Natura 2000 PLC080001 area, which is an overlapping SPA and SAC and partly covered by "Warta River Mouth" (Ujscie Warty) National Park (established in 2001) and its protection buffer zone. Part of the National Park is also marked as a Ramsar Area (former Slonsk Reserve) and entire Natura 2000 area is listed as IBA (Important Birds Area). The independent ESDD has confirmed that the investment programme will not influence the surrounding environment or the protected sites, namely land use and environmental quality to the degree which could impact habitats and animal species
being subject of interest of European Community. This was confirmed by the Competent Authorities and through the permitting process to date, the current investment projects based on screening undertaken do not require an Appropriate Assessment.
Overall, the Company is developing a comprehensive program of modernization and working with the local community and local authorities. It should be noted that the Company has a well-developed site specific stakeholder engagement plan (SEP) which forms part of a site specific social, environmental, health and safety management system.
The paper plant has a valid integrated permit, in line with the requirements of the Industrial Emissions Directive (IED), and are subject to regular inspection from the regulators. The permit is being updated in 2016. To ensure on-going compliance and the implementation of Best Available Techniques (BAT) in accordance with good international practice, the Company has made significant investments in technological and environmental upgrades, notably upgrading the wastewater plant, reducing fugitive emissions well as further energy and water efficiency measures.
Based on the ESDD an Environmental and Social Action Plan ("ESAP") has been developed and agreed with the Company. This includes the need for continued implementation of the SEP and compliance with EU BAT derived environmental standards. The Company will also further develop is CSR program.
Additional Information on the Company can be obtained from the Company web site.
The Bank will monitor the implementation of the Project.
Technical Cooperation funds from Special Shareholders' Funds were used to perform energy and resource efficiency audit at Kostrzyn paper plant in Poland.
Company Contact Information
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