Cersanit Syzran

Location:

Russia

Project number:

42677

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

01 Sep 2011

Status:

Complete

PSD disclosed:

01 Aug 2011

Translated version of this PSD: Russian

Project Description

The EBRD is considering funding a project aimed at restructuring, modernisation and expansion of production capacity of a sanitary ware producer located in Syzran, Russia.

Transition Impact

The transition impact potential of the project derives primarily from the demonstration of a successful restructuring of a company that fell into financial distress.
The Project will also promote Foreign Direct Investments in the regions of Russia that do not benefit from a large inflow of foreign capital.

The project is also expected to improve standards of corporate governance through the entry of a new owner who has extensive experience and know-how of managing similar companies in Poland and Ukraine.

The Client

Syzranskaya Keramika is a sanitary ware production plant wholly owned by Mr Michal Solowow. The company cooperates with Cersanit S.A. the holding and distribution company for the Cersanit Group, the largest Polish manufacturer of complex bathroom fittings and ceramic tiles. Cersanit SA is listed on the Warsaw Stock Exchange.

EBRD Finance

The EBRD is considering providing €35.5 million syndicated loan under the A/B structure with participation of commercial banks.

Project Cost

Confidential.

Environmental Impact

Environmental Categorisation

The project has been categorised B in accordance with the Bank’s Environmental and Social Policy. Minor adverse environmental and social impacts and issues associated with the project have been identified during due diligence. The possible E&S impacts anticipated to result from the project have been assessed to be site specific and addressed through mitigation measures which have been stipulated in an Environmental and Social Action Plan. Due diligence undertaken included a site visit, document review, interviews with management and inspection of all areas of the Project site.

Key Environmental & Social Issues and Mitigation

The company is currently meeting the minimum requirements of Russian environmental and social legislation. However, due diligence has identified certain gaps between the current management and performance of the company and the requirements of EBRD’s environmental and social policy. All such gaps have been addressed in the agreed ESAP.

Summary of environmental action plan

The key item within the ESAP is for the company to address organisational capacity and management systems to implement the EBRD’s E&S Policy. When capacity building has taken place the remainder of the ESAP items are expected to be implemented, including benchmarking the facility against EU and industry best practice.

Disclosure of information and consultation

In the context of the EBRD’s participation in the project, the Company will release locally a summary of relevant environmental issues associated with the project and summarise mitigation measures, action plans and other initiatives agreed, in accordance with the provisions of the EBRD’s Environmental & Social Policy.

Monitoring and reporting

T he Bank will monitor the Company’s ongoing E&S performance, ESAP progress and any major project developments through a review of annual reports to be provided by the Company and periodic site visits.

Technical Cooperation

None.

Company Contact

ZAO Syzranskaya Keramika

446016, Samarskaya oblast

Syzran, Pristanskiy spusk 21

Russia

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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