Ege Profil PVC Plant

Location:

Turkey

Project number:

46868

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Target board date:

22 Jul 2015

Status:

Repaying

PSD disclosed:

23 Jul 2015

Translated version of this PSD: Turkish

Project description and objectives

The EBRD is considering a €26 million loan to Ege Profil Ticaret ve Sanayi A.Ş. (the “company”), a leading PVC profile manufacturer in Turkey, for the construction of a PVC profile manufacturing plant in Izmir including energy and resource efficiency investments (the “project”). The loan will be extended under the EBRD’s new Near-Zero Waste programme which finances waste minimisation projects in Turkey.

Transition impact

The project represents a good opportunity for the Bank to achieve strong transition impact in Turkey, particularly through establishing the necessary framework to accelerate PVC recycling in Turkey, setting standards for energy efficiency and better environmental performance.

The client

Ege Profil Ticaret ve Sanayi A.Ş., a joint stock company registered in Turkey.

EBRD finance

€26 million loan

Total project cost

€26 million.

Environmental and social categorisation, impact, and mitigation

Categorised B: Environmental and social due diligence (ESDD) has shown that the environmental and social impacts associated with the construction and operation of a new PVC profile manufacturing plant in an existing designated industrial area are expected to be site specific, readily identified and addressed through mitigation measures. Potential impacts include worker health and safety risks during construction and operation as well as emissions, wastewater and production waste during operation. The new plant will replace the company’s existing plant located 12 km to the south. The new plant will not involve the production of PVC but rather un-plasticized PVC and associated raw materials will be supplied to the plant for the extrusion and production of PVC profiles for door and window frames. All utilities (for example water, electricity and access arrangements) are available and will be provided by the industrial park. Appropriate wastewater treatment facilities are currently being developed by the industrial park.

ESDD has been undertaken by an independent consultant and has included a corporate review of company management systems, procedures and capacities and how these are applied at the operational level; an audit of the existing production facility; as well as an analysis of the potential impacts associated with the new plant. The company has in place an integrated management system that is certified to ISO 9001, 14001 and OHSA 18001 standards. This management system will be applied to the project. An energy management system as per ISO 5001 is also planned for the new plant. The company will transfer existing production lines to the new facility and further expand these lines. Once the new facility is fully operational the current facility will be closed down and sold.

Before construction commences the company will be required to obtain the necessary permits including the Environmental Impact Assessment (EIA) exemption, if applicable (the project is not listed as requiring an EIA), construction and environmental permits. Current operational emissions and wastewater discharges are limited and within specified limits.  Emissions from the new facility are expected to be similar although wastewater discharges will increase. The company undertakes a high level of process water recycling and most discharges are associated with domestic wastewater. During the divestment of the current facility the company will be required to consider potential historical site contamination, if any. Human resources provisions are in line with the Bank’s Performance Requirement 2 although the company will be required to formalise the existing employee grievance mechanism. Health and safety provisions and the implementation thereof are generally adequate considering the nature of operations although some improvements are required including the development of a detailed Emergency Response Plan to supplement and consolidate existing procedures.

Existing health and safety procedures including the use of personal protective equipment, standard operating procedures, risk assessments, etc., will be reviewed and revised by the company to ensure that they are appropriate to the new facility. The project will involve a number of contractors during construction and operation. Contractors will be required to comply with the company’s and the EBRD’s environmental, social and health and safety requirements. Current employees will transfer to the new facility and the company will be required to develop an appropriate employee transfer/relocation plan and programme. An Environmental and Social Action Plan (ESAP) has been developed to structure the project in line with the EBRD’s performance requirements during construction and operation and agreed with the company. Key actions are described above. In order to meet the Bank’s disclosure requirements the company is currently developing a stakeholder engagement plan, including a grievance mechanism and a Non-Technical Summary for the project.

The company will report annually to the Bank on its environmental and social performance and the implementation of the ESAP. 

Technical cooperation

The resource audit was supported by Turkey and the Caucasus Sustainable Energy Programme (TCSEP), an EBRD technical assistance programme funded by the Spain-EBRD ODA -Sustainable Energy Cooperation Fund.

Company contact

Ms. Gülşah Karan (Finance Manager)
Tel: +90 (232) 398 98 98  
E-mail: gulsah.karan@deceuninck.com
Website: http://www.egeprofil.com.tr

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

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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.