Proposed loan to support the long-term development of Bor Glass Works located in the Nizhny Novgorod region. The main rationale for EBRD’s involvement in this transaction is to provide ongoing support for the long-term investment programme of Bor Glass Works.
The EBRD’s investment will provide ongoing support to the development of Bor and to the Russian glass industry as a whole. The transition impact of the project falls into two main categories: continued improvement of skills and increased competition in Bor's own and other sectors. Glaverbel continues to bring better Western management skills, including financial, marketing, procurement and environmental management to Bor Glass Works. The introduction of green glass into the Russian market and the completion of the auto-glass investments will increase the competitiveness in the current auto-glass market and Russian automotive exports.
Bor Glass Works is the leading producer of float glass in Russia. It is the leader in the auto glass and quality construction glass markets and also produces mirrors, double-glazing and tableware. It is located in the town of Bor on the opposite side of the Volga River to Nizhny Novgorod, 500 kilometres east of Moscow. The EBRD and the International Finance Corporation (IFC) each invested US$ 15 million in 1997 in the equity of Bor Glass Works in a Glaverbel-led consortium that acquired a 75 per cent controlling interest in Bor Glass Works. Glaverbel is a large European glass producer that is a subsidiary of the world's largest glass producer, Asahi Glass Co.
A US$ 25 million (€28 million) long-term loan alongside a similar facility from IFC for the proposed investment programme. This will include the cold repair of a float glass line and new investments in the flat glass and automotive glass production processes.
US$ 84 million (€95 million) over 4 years.
The project was screened as B/0, requiring an environmental analysis. The environmental action plan, which was developed for the equity investment, is completed. This investment will complete the two float furnace cold repairs started in March 2000. These cold repairs significantly reduce the nitrogen-oxide emissions. Environmentally friendly materials will replace the asbestos rollers currently used on the line. These repairs also result in significant energy efficiency gains (approximately 30 per cent on previous performance).
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