Krasnodar Glass Packaging Plant

Location:

Russia

Project number:

38631

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

11 Dec 2007

Status:

Completed

PSD disclosed:

05 Nov 2007

Project Description

Financing the SiseCam group’s further expansion in the Russian glass beverage container sector via the construction and of a greenfield glass bottling plant with a capacity of 140,000 tonnes near the town of Krasnodar in the Southern Russia region, including financing of an additional furnace to expand capacity to 280,000 tonnes.

Transition Impact

Regional expansion

The Project will be located in Krasnodar region which has only 4% of the glass container production capacity in Russia. From its output the Company will supply the Black Sea and Caucaucus regions of Russia. These regions are characterised by large populations and significant demand for beverages and containers but lack an adequate glass bottling capacity.

Competition

Krasnodar has a close proximity to a large number of regional clients that are active in the beer, wine and mineral water sector. The Sponsor is promoting NNPB bottles which require 20% less raw materials for production, are less prone to breakages, and are suitable for a faster production cycle.

Contribution to upstream linkages

The development of upstream linkages will be achieved among the raw material suppliers through the increased procurement needs. This will create the need for capacity increases for producers of raw materials such as soda ash and sand processing. The Sponsor will cooperate actively with suppliers to provide necessary guidance, training and know-how to ensure high quality materials are procured from local suppliers.

Contribution to downstream linkages

From the customers’ viewpoint, higher and more consistent quality items, product development and innovations will be the likely benefits from the Group’s involvement. The new investment in Krasnodar Region aims to meet both increasing demand for glass packaging from the developing wine sector, which is growing at an annual rate of 10-15% and is highly concentrated in Krasnodar. The Krasnodar plant is planned to meet the high demand for good quality bottles required by the Russian mineral water sector, which is largely concentrated in the South of Russia.

The Client

Ruscam-Kuban LLC, a greenfield company, majority-owned subsidiary of Anadolu Cam, the largest producer of food and beverage containers in Turkey and a member of the Turkish SiseCam group.

EBRD Finance

EUR 37.5 million long-term loan to be provided to the Borrower in two tranches to match investment timetable of two furnaces with up to EUR 11.2 million for Bank’s own account and EUR 26.3 million for the two participant’s account. Tranches will be in amounts of EUR 22.5 million (“Tranche 1”) and EUR 15 million (“Tranche 2”). The Loan will also be available for disbursements in US Dollars.

EUR 15 million equity investment by EBRD into a new SPV to be created solely for the purpose of investing in the Project.

Project Cost

EUR 75 million

Environmental Impact

tba

Technical Cooperation

None.

Company Contact

Aytac Mutluguller, Manager, International Finance & Investments
Turkiye Sise ve Cam Fabrikalari A.S.
Is Kuleleri
Kule 3
34330 4
Levent, Istanbul
Turkey

 

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.

Share this page: