Project Description
Can-Pack S.A., a leading producer of aluminium and steel can packaging in Europe ("Can-Pack"), has approached the Bank to finance the construction and equipment of a brownfield aluminium can production factory to be located in Volokolamsk, in the Moscow region of the Russian Federation.
Transition Impact
The main drivers of transition impact in this operation will be
(a) enhancement of competition in the Russian aluminium packaging industry in which currently there is only one large producer/supplier
(b) introduction of EU standards and business practices at the contemplated facility in Russia and
(c) strengthening of cross-border investments within the EBRD countries of operations.
The Client
OOO Ken Pak Zavod Upakovki, a limited liability company incorporated and existing under the laws of the Russian Federation (the "Borrower").
EBRD Finance
Up to USD 50 million senior syndicated loan.
Project Cost
Approximately USD 104 million.
Environmental Impact
According to EBRD's Environmental Policy and Procedures this project has been categorised B/1. The project involves the provision of a loan to the Borrower, an existing company located outside Volokolamsk, for refurbishing existing buildings and constructing a new production hall.
To date Can-Pack has submitted a range of information to the Bank and a site visit was conducted to its operating can production facility in Brzesko, Poland. The Bank's environmental due diligence, which is ongoing, aims to assess the Can-Pack Group’s management of environmental, health and safety issues and ability to comply with national and applicable EU environment, health and safety (“EHS”) standards and if necessary agree actions for the improvement of EHS performance and management.
Environmental, health and safety impacts
While the production of aluminium cans is associated with some EHS issues these are typically easy to identify and possible to manage. Issues include mitigation of VOC-containing air emissions, appropriate waste water treatment, improvement of energy efficiency, maintenance of hygiene, and ensuring occupational health and safety. The Can-Pack Group have been operating can production plants in a number of European Union member states and have a proven ability to operate to EU environment, health and safety standards and regulations. Their Russian production facility, will be equipped with the best available technology and equipped with efficient air emissions incinerator and a waste water treatment facility.
Environmental management
The Can-Pack Group has high corporate standards of environmental, health safety and human resources management. The group policies and procedures will be implemented in their Russian facility allowing for complying with Russian Federation law. The Can-Pack Group has committed to implementing an environmental management system in the Russian facility.
The Can-Pack Group is committed to recycling and has been instrumental in setting up schemes for the recycling its own aluminium production scrap and used beverage cans ("UBC") that are collected from the market. The Bank is currently exploring how it can support the group’s efforts to introduce a similar scheme in Russia.
Monitoring and reporting
The Bank will monitor the Borrower’s environmental performance for the lifetime of the loan through annual environmental reporting and via periodic site visits. The Borrower will be required to immediately notify the Bank of any incidents or accidents likely to have an effect on the environment or worker and public safety.
This section of the PSD will be revised upon completion of the Bank’s due diligence.
Technical Cooperation
Funding is currently being sought for the preparation of a comprehensive analysis of the existing infrastructure and legal regulations relating to aluminium recycling in Russia. The study would enable the client to use recycled aluminium in production of cans in Russia, thereby reducing the environmental impact of aluminium can production and, potentially, reducing the cost of the raw materials.
Company Contact
Wojciech Burczyk
Vice-President, Finance
CAN-PACK S.A.
Tel.: +48 (12) 6623402
Email: wburczyk@canpack.eu
Website: www.canpack.eu
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.
