GFT - Getrag FORD Slovakia

Location:

Slovak Republic

Project number:

43439

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Target board date:

26 Jun 2012

Status:

Complete

PSD disclosed:

27 Jun 2012

 

Translated version of this PSD: Slovak

Project Description

The EBRD is considering providing a senior credit facility of up to €50 million to the GETRAG FORD Transmissions Slovakia s.r.o. for production capability expansion, and dedicated R&D (manufacturing engineering) in Kechnec plant. The project is related to know-how transfer from GFT’s Innovation Centre in Cologne with respect to ongoing improvement and adaptation of dual clutch transmissions (DCT).

By providing the financing, the EBRD will allow GFT to increase its maximum output capability in the Kechnec plant by 30 % in order to meet growing demand from different customers.

Transition Impact

The transition impact will stem from the following factors:

  • Market expansions through linkages to local suppliers: The Bank will support an increasing R&D cooperation between the development centre in Cologne and the engineering team Kechnec, as the Kechnec investment is related to a broader R&D dual clutch transmission (DCT) programme carried out by GFT.
  • Technology and skill transfer: Good and reliable cooperation with quality suppliers has been tested and is ready for development. One of the key goals of the management is to increase the share of both local suppliers and suppliers from the neighbouring countries.

The Client

GETRAG FORD Transmissions Slovakia s.r.o. a limited liability company incorporated in Slovakia, a fully owned subsidiary of GETRAG FORD Transmissions GmbH. GFT Slovakia, located in Kechnec, an industrial park located just 30 km south from Kosice, is the only facility within the GFT Group producing dual clutch transmissions.

EBRD Finance

€50 million senior debt.

Project Cost

€402.5 million. (Total project cost of the entire plant).

Environmental Impact

This project has been Categorised B in accordance with the EBRD’s E&S policy and independent due diligence has confirmed that E&S impacts are limited in nature and are site specific, have been readily identified and minor outstanding issues have been addressed through mitigation measures.

An independent consultant was appointed by the EBRD to undertake detailed due diligence which comprised a document review, management interviews and a site visit. While large scale manufacturing of automotive parts often presents a number of potential E&S risks the project site is of recent construction (2007), is located in an EU member state and operates to meet EU requirements. The age and location of the facility and the capacity of the parent company to actively manage E&S risks results in a low risk of E&S impacts associated with the project.

The independent consultant developed an E&S Action Plan following the conclusion of due diligence that has been agreed with the company and addresses the few minor findings of the due diligence. Due to the good operating performance of the company ESAP items are limited to confirming that all documentation relating to the site expansion has been obtained and maintained, to expand the existing internal grievance mechanism and to implement the consultant prepared Stakeholder Engagement Plan.

Project monitoring shall be undertaken in accordance with the timing of the ESAP and, due to the risk profile of the project, shall be based on company provided annual reports and disclosures.

Technical Cooperation

None.

Company Contact

GETRAG FORD Transmissions Slovakia s.r.o.
Perínska cesta 282
044 58 Kechnec, Slovak Republic

GETRAG FORD Transmissions GmBH
Scarletalle 2
50735 Cologne, Germany

Phone: +49 221 5897-0
Email: sgrozea@getrag-ford.com
Website: www.getrag.com

 

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