Lafarge Polska II

Location:

Poland

Project number:

8651

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

14 Dec 1999

Status:

Completed

PSD disclosed:

18 Dec 2000

Project Description

A senior loan to Lafarge Cement Polska (LCP) to support the company’s modernisation and development programme in the building materials sector in Poland.

Through its loan, the EBRD will support LCP with the implementation of an investment programme for the modernisation of the company’s cement plants. The investments are expected to result in a reduction of production costs, improved efficiency, reduced maintenance costs as well as a reduction in adverse environmental impact due to lower air emissions.

Transition Impact

By funding the modernisation of LCP’s building products operations, the Bank will be supporting further modernisation and promoting competitiveness within this sector. Finally, the investments are likely to have a positive effect on ancillary businesses supporting and servicing the building products sector. The overall result will be an improved sector able to effectively compete with western European cement producers following EU accession.

The Client

LCP is one of the largest cement producers in Poland operating cement plants in Kujawy and Malogoszcz, with an aggregate market share of 22 per cent and total installed cement production capacity of 3.7 million tons per year. The company is a subsidiary of Lafarge Polska, the project sponsor. In addition to cement production, Lafarge Polska produces lime, aggregates, limestone and ready-mixed cement. Both LCP and the sponsor are joint-stock companies incorporated in Poland, and established by the French based Lafarge Group, world leader in building materials. In addition to the corporate financing of LCP, the EBRD holds a 22.42 per cent stake in Lafarge Polska.

EBRD Finance

The EBRD is providing a senior multi-currency loan to LCP for €75 million or the equivalent in Polish zloty. Commercial banks are to provide the remaining €75 million for the project through a parallel financing structure.

Project Cost

The total project cost is estimated to be approximately €180 million.

Environmental Impact

The project has been screened B/0, requiring an environmental analysis of the proposed development. As environmental audits were carried out during the initial Bank’s investments in the facilities under the MPF facility, there was no need to carry out an audit for this transaction. Based on the findings of the audits, Environmental Action Plans (EAPs) were developed for Kujawy and Malogoszcz and agreed with the Bank. The EAPs which are currently being implemented will bring the companies in line with the relevant Polish and EU environmental, health and safety standards.

The proposed investment programme will result in significant environmental benefits. Use of latest technology will result in reduced environmental impact, primarily through reduced emissions and energy use. The proposed investments have been structured to fully meet Polish and EU environmental standards.

Technical Cooperation

None.

 

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

Share this page: