DFF: Wuppermann Hungary Kft

Location:

Hungary

Project number:

47326

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

26 May 2015

Status:

Disbursing

PSD disclosed:

15 Jun 2016

Translated version of this PSD: Hungarian

Project Description

The EBRD has provided financing to Wuppermann Hungary Kft. in the form of portage equity.

Wuppermann is a German family owned steel processing company. The plant will have capacity of 500,000 tons and will be located in the Danube port of Gyor-Gonyu.

Project Objectives

This project is Wuppermann's first investment in Hungary and the second largest independent galvanising company in Europe. The greenfield plant in Gyor-Gonyu will replace Wuppermann's existing plant in Linz. The production activities are expected to commence in the last quarter of 2016.

Transition Impact

This greenfield galvanising plant is compliant with EU Best Available Techniques for the sector (Ferrous Metals Processing Industry) and represents one of Europe's most energy-and cost efficient galvanising lines.

The project will support skill transfer to local staff who will undergo extensive training programme.

EBRD will also assist the company in developing and implementing best environmental and occupational health and safety practices.

Client Information

WUPPERMANN HUNGARY KFT

Wuppermann AG is a German family-owned company with a track record of over 140 years. The company specializes in production of galvanised steel strips, welded tubes, profiles and intermediary steel components. The majority of its products are sold in Germany and other EU countries.

EBRD Finance Summary

EUR 10,000,000.00

Total Project Cost

EUR 102,500,000.00

Environmental and Social Summary

Categorised B (2014 ESP): Environmental and Social Due Diligence (ESDD) has shown that the impacts associated with the construction and operation of a new galvanising plant in an existing industrial port area adjacent to the Danube River are site specific and readily addressed through the implementation of  standard mitigation and management measures.

ESDD was undertaken by the Bank and included a questionnaire, a review of environmental documentation and a site visit. The Project is listed in Annex II of the EU EIA Directive and was subject to a preliminary EIA (PEIA) which showed that the impacts associated with the Project are not expected to be significant. Consequently, the environmental authority deemed that a full EIA was not required and issued a permit for the project.  The PEIA also confirmed that the Project would not impact the adjacent Natura 2000 area (HUFH30004 Szigetköz on the Danube River) and would not result in transboundary impacts on Slovakia.  Although not requiring a full EIA, the Project does trigger the Industrial Emissions Directive.  The Project undertook an IED study, received the necessary IED permit and is compliant with EU Best Available Techniques (BAT) for the sector. The Project is to be located in an existing industrial port area. To accommodate the Project, and other customers, the existing port facilities will be expanded by the State to include four new berths along the Danube River. This expansion has been subject to a full EIA which further confirmed that the port will not impact on the adjacent Natura 2000 area.

The ESDD has shown that the Company demonstrates good environmental and social performance at its other plants and has the capacity to meet the PRs. The Company has in place various procedures for the management of environmental and health and safety issues.  These procedures fall under a wider ISO 9001 certified management system and a similar system will be applied to the Project and contractors.  The Company has demonstrated that these procedures are generally adequate for its existing operations but to bring the Project fully in line with the PRs the Company will need to include environmental and health and safety functions in the management system in line with ISO 14001 and OHSAS 18001 standards. Further, the Company will need to designate specific EHS positions for the Project. The port has in place an ISO 9001 and ISO 14001 certified management system, which covers all port activities including the port expansion.

Company HR provisions are in line PR 2 requirements and these provisions will be applied to the Project.  The Project will comply with national labour standards and Company requirements.  A formalised internal grievance procedure will be required for the Project. The Project will replace the Wuppermann plant in Linz, Austria, which will be closing down following the expiry of the Austrian company’s lease and supply contract.   The Company has a retrenchment plan in place for the Linz plant and has communicated and will continue to communicate with employees on the matter.

As the project was not subject to a full EIA it was not required to go through an EIA consultation process.  The Company has, however, held various meetings with local stakeholders and community members.  The Company also regularly liaises with various authorities. In order to meet the Bank's information disclosure requirements, the Company will be required to develop a corporate Stakeholder Engagement Plan and Non-Technical Summary for the Project. An Environmental and Social Action Plan (ESAP) has been developed to structure the Project in line with the PRs and has been agreed with the Company.  The Company will be required to report on the E&S performance on its operations, and the implementation of the ESAP, to the Bank on an annual basis.

Technical Cooperation

None.

Company Contact Information

Wuppermann AG
info@wuppermann.com
+49 (0) 21 71 50 00 800
+49 (0) 21 71 50 00 802

Ottostraße 5 D-51381 Leverkusen Germany

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