Eurodisk

Location:

Russia

Project number:

40714

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

13 Dec 2011

Status:

Cancelled

PSD disclosed:

26 Nov 2010

Translated version of this PSD: Russian

Project Description

The EBRD intends to make €25 million of investment in MWPT BV, a company established in the Netherlands, which is the sole owner of Eurodisk, incorporated in Kingisepp, the Leningrad Oblast.

The use of proceeds from the Banks investment will be in the Russian Federation.

Eurodisk is the first and so far only Russian modern producer of steel wheels for automotive sector that has been launched into commercial operation in 2009, with a specific focus on supply to car manufacturers in Russia.

The EBRD's investment will strengthen the balance sheet of Eurodisk to help the long-term success of the company in the Russian automotive component market.

Transition Impact

The project will promote the localization of the component supply in the new segment of the Russian automotive industry.

Therefore, the project will support skills and new technology transfers to local automotive supply industry, facilitate market-based industrial restructuring and improve local industry-wide quality standards.

It will also represent an important step in the diversification of the Russian economy and upgrade of its manufacturing base.

The Client

MW Eurodisk, incorporated in Kingisepp, Russian Federation.

The operation will be supported by Magnetto Wheels, one of Europe’s largest producers of steel wheels for passenger cars and light commercial vehicles.

EBRD Finance

€25 million equity.

Project Cost

€30 million.

Environmental Impact

Environmental classification and rationale

The project is categorised B. The manufacture of automobile wheels is associated with a number of site specific issues, which can be readily identified, assessed and mitigated through measures as defined in the Environmental and Social Action Plan.

Key environmental issues and mitigation

Due diligence has been carried out on the Company operations by means of discussions with management around policies, procedures and performance against environmental and health and safety regulations; the corporate activities undertaken with regard to stakeholder engagement; and a site tour to view current activities and performance.

The management are highly experienced in working to internationally recognised standards of EHS performance and are developing management systems in line with such standards (for example ISO 14001 and OHSAS 18001).

Certain areas were identified that require to be addressed to bring the operations into compliance with the Bank’s Environmental and Social Performance Requirements (PRs) and these issues have been addressed via the drafting of an Environmental and Social Action Plan (ESAP) which has been agreed with the Company.

Summary of Environmental Action Plan

The Company will be required to adhere to the Bank’s PRs. Specific actions include the drafting of a Stakeholder Engagement Plan in line with the Bank’s PR10; implementation of a Contractor Management Programme; review of the storage of hazardous materials; review of the options available in regard to wastewater treatment and discharge; and ensuring that future development of the site meets Russian regulations and the Bank's requirements.

Monitoring and reporting

The Company will monitor the environmental impact of its operations in accordance with national law and regulations. The Bank will evaluate the project's compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing annual environmental reports prepared for the project.

Technical Cooperation

None.

Company Contact

Igor Zhukov, CFO

E-mail: igor.zhukov@mwpt.ru

Tel. +7 8137 568 500
Fax: +7 8137 568 501

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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