DFF - Florian Group

Location:

Croatia

Project number:

49521

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Target board date:

06 Nov 2018

Status:

Disbursing

PSD disclosed:

14 May 2019

Translated version of this PSD: Croatian

Project Description

The provision of long-term financing to Lipovljani Lignum d.o.o. (the Borrower), a key subsidiary of Florian S.p.A., a joint-stock company incorporated in Italy, acting as a holding company for subsidiaries in Italy, Croatia, France, and Hungary (Florian Group). Florian Group operates in the hardwood processing industry through the production and sale of square-edged boards, floorings and furniture.

Project Objectives

The EBRD funding will be used to finance investments into resource efficiency improvements through the construction of a pellet plant at the facilities of DI Novoselec d.o.o., a subsidiary of the Borrower, and to support Florian Group's move towards more value-added production.

Transition Impact

The Project promotes the transition objectives in the following ways:

  • Green: The financing will fund investments into new technology that will lead to resource efficiency; and
     
  • Well-governed: The Bank will support the Group's corporate governance through the development and implementation of a comprehensive Corporate Governance Action Plan (CGAP).

Client Information

LIPOVLJANI LIGNUM DOO

Lipovljani Lignum d.o.o. is a limited liability company incorporated in Croatia that produces wood elements and panels.

Lipovljani Lignum d.o.o. is part of the Florian Group of companies, a major player in the hardwood processing industry in Europe.

EBRD Finance Summary

EUR 5,000,000.00

Long-term financing to the Borrower in the amount of up to EUR 10,000,000, to be 50/50 split between EBRD and the Enterprise Expansion Fund.

Total Project Cost

EUR 10,000,000.00

Environmental and Social Summary

The project is category B (2014 ESP). The ESDD was carried out in-house by an ESD specialist involving a site visit to Croatian facilities and to other reference plants of the Group.

Florian Group focuses strongly on resource efficiency, almost all of the round wood is used either for planks, elements, flooring, and furniture products with wood waste used in pellets or as fuel for biomass boiler. On the management side, there is a lack of formal risk assessment, procedure or management system for environment, social and health & safety risks at the Croatian plants. Further, Florian has no EHS manager in place at the corporate level, however this position is presently being recruited for. The client also lacks a formal management procedure for contractor EHS management.

An Environmental and Social Action Plan (ESAP) has been developed for the project and agreed with the client. It includes the development and implementation of:

  • A certified management systems for Environment and Occupational Health & Safety (EHS) at all sites under the investment programme;
  • A procedure for monitoring all contractors' Environmental, Social, Health and Safety (ESHS) performance;
  • A wood procurement policy to ensure that the wood supplied to the mill is of legal and sustainable origin; and
  • Human Resources capacity to manage EHS at both the corporate and site level including a group EHS manager.

The investment plan is in the process of being finalised and the ESAP includes a number of additional measures to ensure that the construction of future facilities is in line with EBRD requirements.

Technical Cooperation

The Borrower is eligible for TC funds to assist with the implementation of the CGAP.

Company Contact Information

Lipovljani Lignum d.o.o.
http://www.florianinc.com/
Industrijska 24 44322 Lipovljani Croatia

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

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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.