Barlinek

Location:

Ukraine

Project number:

36929

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

25 Jul 2006

Status:

Complete

PSD disclosed:

22 Jun 2006

Project Description

The proposed project involves the construction of floorboard production facility in Vinnytsia, Central Ukraine, by Barlinek Invest, a subsidiary of Barlinek SA, Warsaw Stock Exchange listed joint stock company..

The production facility will consist of softwood/hardwood saw mills, a floorboard production line and a pellet (bio-fuel) production plant

Transition Impact

The proposed project will have a significant transition Impact derived mainly from: supporting regional expansion of a Polish company to a neighbouring country, encouraging foreign direct investments into Ukraine, skill transfer as well as demonstration effect of environmentally sound wood processing and bio-fuel industry (Pellet) in Ukraine, promotion of sustainable forest management standards and certification through market mechanisms in Ukraine.

The proposed project will be the first floorboard production plant located directly in Ukraine, settled by a reputable sponsor and a key player in the international floorboard market.

The proposed project will also contribute to the facilitation of more efficient use of wood resources. The skill transfer will take place thanks to training programmes, innovative business processes and capital investments in modern, high-tech production machinery.

The proposed project will facilitate a high quality supply of floorboard to local and Russian market at better terms than in case of imports.

The Client

Barlinek Invest is 99% subsidiary of Barlinek SA, Poland. Barlinek SA is a leading floorboard producer.

EBRD Finance

The Bank will arrange EUR 39 million financing facility that will be in part syndicated to commercial banks.

Project Cost

Confidential.

Environmental Impact

Environmental classification

The construction and operation of a new, medium-size floorboard production facility with sawmill operations is typically associated with limited direct environmental, health and safety issues, which can be efficiently mitigated with modern technology, project design, construction planning and work practices. The proposed location of the new plant had been previously used as an aircraft repair facility. For the above reasons, EBRD has classified the project B/1.

Environmental issues

Environmental due diligence showed that there are no significant environmental issues associated with Barlinek’s production facilities in Poland. Since 1999 Barlinek has been implementing various environmental, health and safety improvement measures, as a result of which the facilities are currently in full compliance with all relevant Polish and EU environmental standards. The company has confirmed that the Ukrainian Project will be conducted in line with the standards and technology being applied in Barlinek SA (Poland) and will fully meet Ukrainian and EU environmental, health and safety standards. As the site for the proposed project had been previously used as an aircraft repair facility, an audit has been requested to establish the baseline conditions, assess the risk associated with past environmental damage and agree on corrective measures to ensure that the site is fit for the construction and operation of the new production facilities.

Wood procurement issues

Similarly to its Polish operations, the Company will be required to adopt and implement sustainable wood procurement plan and procedures that are in line with internationally recognised sustainable forest management standards, ensuring that:

(i) the wood does not originate from statutory protected forests, forest areas included in nature conservation programmes or sites which have been notified by the authorities to be excluded from felling;

(ii) the origin of the wood is monitored;

(iii) suppliers operate according to the principles of sustainable development, in compliance with the legislation currently in force and under the supervision of state authorities; and (iv) the biodiversity and the functions of the forest ecosystem are maintained in accordance with internationally and nationally approved principles.

Environmental opportunities

The plant will introduce state of the art technology with high standards of energy and resource efficiency and has potential for demonstrating benefits of environmentally sound wood processing in Ukraine. The project provides an opportunity to promote sustainable forest management standards and certification through market mechanisms in Ukraine. The project will also be promoting bio-fuel (pellet) manufacturing industry and markets in Ukraine.

Disclosure of information and consultation

The Company will inform general public in Vinnytsia of the project according to Ukrainian public disclosure provisions. In accordance with the provisions of the EBRD’s Environmental Policy, the Company has disclosed locally this summary. The summary in English has also been posted on EBRD’s website at www.ebrd.com.

Environmental monitoring

The Company is committed to monitor environmental and health & safety issues in accordance with Ukrainian requirements and with good international industry practice. A specific monitoring programme has been established to ensure air emissions of dust, waste water discharges and indoor air quality will remain within regulatory limits. The EBRD will evaluate the project's compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing annual environmental reports (AERs) covering:

(i) ongoing environmental, health and safety performance;

(ii) the status of implementation of environmental mitigation and improvement measures; and

(iii) wood supply issues. The EBRD’s representatives may also conduct periodic site supervision visits when deemed appropriate.

 

Technical Cooperation

None.

Company Contact

Barlinek SA
Ul. Przemslowa 1, 74-320 Barlinek

Tel: (+48 95) 74 79 300
Fax: (+48 95) 74 91 301

 

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

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