Fagor Wrozamet Restructuring

Location:

Poland

Project number:

37113

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Target board date:

05 Dec 2006

Status:

Signed

PSD disclosed:

18 Aug 2006

Project Description

Fagor intends to invest EUR 31 million in Wroclaw for a new washing machine and refrigerator plant and for the modernisationof an already existing plant producing cookers. The project will create about 1,000 new jobs.

Transition Impact

The project will contribute to further restructuring of Wroclaw-based Fagor Mastercook, a company which was privatised, when it was bought by Fagor Electrodomesticos, of Spain, in 1999. Fagor Electrodomesticos aims to make Mastercook the its industrial and commercial hub for Central Europe. The project will assist the company in achieving economies of scale though substantial production growth. The company is expected to improve operational efficiency through closer integration into the Fagor group and the modernisation of its production capacities. The project will also further stabilise the client's business through product diversification.

The Client

Fagor Mastercook (formerly Wrozamet), is the second largest company in white goods in Poland, located in Wroclaw. Fagor Electrodomesticos, a member of Mondragon Corporacion Cooperativa, is the fifth largest white goods manufacturer in Europe.

EBRD Finance

EUR 17.5 million equity investment in Fagor Mastercook.

Project Cost

EUR 31 million.

Environmental Impact

Environmental classification and rationale

The proposed project was screened B/1, requiring an Environmental Audit and Environmental Analysis in line with the Bank’s Environmental Policy and Public Information Policy. The manufacturing of white goods, such as kitchen appliances at an existing facility and proposed expansion of the existing site is associated with a number of environmental issues, which were dentified, assessed and mitigated as part of an Environmental Analysis.

As part of the environmental due diligence an Environmental Audit and Analysis was undertaken by the European Bank for Reconstruction and Development (“EBRD” or the “Bank”).

Key environmental issues and mitigation

The operation of an existing facility is not associated with significant environmental impacts. The predominant environmental impact is associated with, among others, the component manufacture and use of chemical and materials. The ongoing expansion and modernisation programme includes the construction of a new production hall and installation of new production lines for an existing and new assortment of products such as washing machines. The impact is not judged to be significant as the use of state-of-the-art technology will mitigate any adverse effects . The plant has invested in new paint spraying facilities to limit environmental emissions and ensure good worker health and safety conditions.

The Company is currently in compliance with Polish environmental regulations and is implementing systems to ensure ongoing compliance with future EU-driven environmental requirements, notably EU IPPC, WEEE and RoHS Directive, as relevant. The company has applied for an IPPC permit and all new investments are structured to ensure compliance with Best Available Techniques (“BAT”) pursuant to the EU IPPC Directive.

Summary of environmental action plan

The Company will be required to adhere to Polish environmental, health and safety regulations and EU environmental standards, including IPPC requirements. The Company will also maintain an Environmental Health and Safety (“EHS”) system in line with good international practice.

Disclosure of information and consultation

In the context of the EBRD’s participation in the project, the Company will release locally a summary of relevant environmental issues associated with the project and summarise mitigation measures, action plans and other initiatives agreed, as in accordance with the provisions of the EBRD’s Environmental Policy. The summary in English has also been posted on the EBRD’s website at www.ebrd.com

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 covering:

(i) ongoing performance of project-specific environmental, health and safety activities as reflected in the results of periodic and quantitative sampling and measuring programmes, and

(ii) the status of implementation of environmental mitigation and improvement measures. The Bank’s representatives will also conduct periodic site supervision visits when deemed appropriate.

 

Technical Cooperation

None.

Company Contact

Fagor Mastercook
Ul. Zmigrodzka 143
51-130 Wroclaw

Tel. (+ 48 71) 25 21 58

Website: www.wrozamet.com.pl

 

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

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.