DLF - Mebelain

Location:

Belarus

Project number:

41620

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

18 Jul 2011

Status:

Complete

PSD disclosed:

09 Aug 2011

Translated version of this PSD: Russian

Project Description

The EBRD is considering providing a €5 million senior loan to IOOO Mebelain to development a greenfield veneer-faced furniture production plant in Belarus.

The Project, being purely private sector operation, is in line with the updated EBRD Country Strategy for Belarus.

Transition Impact

The key transition impacts for this project include:

  • The demonstration effect of showcasing efficient production of high quality furniture, compared to what is currently available on the local market
  • The demonstration effect of a successful foreign direct investment can reach beyond the wood processing sector, and possibly encourage further manufacturing FDI in the country.

The Client

IOOO Mebelain, a company newly set up by SBA Furniture Group of Lithuania.

EBRD Finance

The EBRD loan, when approved by the EBRD’s Board of Directors, will contribute to finance the construction, equipment and placing into operation of, and the provision of working capital for, a greenfield veneer-faced furniture factory located in the Free Enterprise Zone Mogilov in Eastern Belarus.

Project Cost

About €15 million.

Environmental Impact

Categorised B. The Environmental and Social Due Diligence (ESDD) has been undertaken through review of detailed Environmental, Health and Safety, Social questionnaires filled in by all companies of the SBA Furniture Group, supporting documentation and the Group’s official reporting to environmental authorities. The Bank’s environmental specialists also visited the Group’s production sites in Lithuania and the future plant’s site in Belarus.

The Borrower is indirectly wholly owned by SBA Furniture Group, largest furniture manufacturers in the Baltic States. The ESDD showed that SBA operations in Lithuania are well managed with a sound environmental, health and safety management system in place. SBA Furniture Group complies with strict requirements from its customers for environmental issues, working conditions and safety that correspond with the Bank’s Performance Requirements. All of the SBA plants in Lithuania are certified to ISO 9001 Quality and ISO 14001 Environmental Management standards, as well as have Forestry Stewardship Council (FSC) Chain-of-Custody and Controlled Wood certification ensuring that the wood raw material supplied to the plants is of legal and sustainable origin.

The construction of the new furniture plant in Belarus will be mainly associated with temporary noise, dust, traffic disturbance issues. SBA has committed to implement good international E&S management practices in the operation of the plant, similar to those in place at its Lithuanian operations. This involves controlling air emissions (dust, VOC, combustion gases) and implementing waste management measures based on waste minimisation and recycling. The Belarus plant will also require its suppliers to ensure that the key raw materials, namely particleboard and veneer, are manufactured from wood raw material that is of legal and sustainable origin and that particleboard will be E1 classified in accordance with EU standards for free formaldehyde content in the final products.

The Company will provide the Bank with annual environmental and social reports and notification on any material accidents or incidents.

Technical Cooperation

EBRD has previously conducted a study on the forest sector in Belarus.

Company Contact

Project manager Narunas Stasius
Tel. +370 686 43335
E-mail: narunas.stasius@sbafurniture.lt

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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