Daido Metal Russia Ltd

Location:

Russia

Project number:

37896

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Target board date:

18 Sep 2007

Status:

Completed

PSD disclosed:

17 Aug 2007

Project Description

The proposed project entails the purchase of 100% of shares in an existing Russian company, ZMZ-Bearings Ltd (the “Company”), operating near the city of Nizhny Novgorod. The purchase agreement was signed on 01 august 2007. The share acquisition will be financed by Daido Metal Co., Ltd, the “Sponsor” (for two-thirds) and by EBRD (for one-third). The Company’s operations will be modernised and its sales network will be expanded both locally and abroad.

Transition Impact

The proposed project assists the entry of a high quality auto parts supplier into Russia. The project will promote technology and skills transfer from the Sponsor to the Company, as well as improvement in operational efficiency and product quality. The success of the project may encourage other international automotive suppliers to enter Russia and assist in the restructuring of local companies in the automotive supply sector, thereby increasing local competition and aiding in the development of a market economy in Russia.

The Client

ZMZ-Bearings manufactures automobile engine components, such as half-shell bearings, bushes and washers. It is the leading Russian company in the manufacture of such products locally. The Company will be owned and managed by the Japanese Sponsor, a leading manufacturer of plain bearing products with operations in twelve countries worldwide.

EBRD Finance

EBRD will provide up to RUB 130 million (approx. USD 5 million equivalent) in equity financing.

Project Cost

Approx. USD 20 million equivalent to be funded by a combination of debt and equity.

Environmental Impact

The project was screened B/1. Independent environmental due diligence, including a Phase I site audit, a Phase II soil and groundwater investigation, and a site visit by the Bank’s Environmental Specialist confirmed that whilst there are some marginal outstanding environmental, health and safety issues that need to be addressed, overall the Company’s operations are in compliance with national requirements and there are no significant environmental, health and safety issues. All of the outstanding issues are contained in an environmental action plan (EAP), which will form part of the Subscription Agreement between EBRD and the Sponsor.

Technical Cooperation

None.

Company Contact

Mr. Hideo Yoshida, General Manager

Daido Metal Co., Ltd., Japan
Tel: +81-(0)3-5462-3302; Fax: +81-(0)3-5462-3310
E-mail: yoshida.hideo@daidometal.co.jp
Web: www.daidometal.co.jp

 

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

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.