Translated version of this PSD: Russian
The EBRD is considering a two phase project consisting of a working capital facility and a capital expenditure project for Claas’ production in Russia. Working capital needs in the industry fluctuate heavily throughout the year and will grow with the expansion of operations. The EBRD working capital loan will allow Claas to maintain or expand existing credit lines with its dealers (majority Russian SMEs). This is a benefit for the end customers as a dealer is able to pass on longer payment terms. Claas began manufacturing combine harvesters in the Russian Federation 5 years ago in a new Greenfield facility in Krasnodar/South Russia. Since then, due to the success of their superior and high tech products Claas has consistently increased the facility’s annual production volumes. As a result of long-term, strongly growing market demand, Claas is planning for a significant extension of manufacturing capacity, which the EBRD will also finance via a second phase of the project. The proportion of value added via manufacturing versus assembly line is expected to grow significantly as a result of the project.
Claas is a market leader worldwide and its technology is regarded as highly modern and competitive in the sector. Despite the Russian combine harvester market being traditionally dominated by local players, over recent years it has seen substantial growth in the amount of imported machinery. Claas has become a strong player in the Russian combine harvester market offering a high quality product and accompanying production technology. Claas’ production facility is expected to have a strong demonstration effect on foreign and domestic manufacturers, which could potentially lead to the adoption of new technologies and best international practices by other market players.
Claas is one of the world's largest agricultural equipment manufacturers with headquarters in Germany. Claas generated sales and EBITDA in 2009 of EUR 2.9 billion and EUR 230 million, respectively. The Company has agricultural equipment production facilities in Germany, France, Hungary, India, the United States and Russia.
The facility would consist of a multi-currency (EUR/RUB) working capital loan to the Company in the amount of up to EUR 20 million as an initial phase. Up to EUR 55 million of additional financing will be made available under a second phase of capital investments allowing the company to expand its production capacity.
EUR 75m (EUR 20m (Working Capital line constituting Phase I of the Project) and EUR 55m long term loan constituting Phase II of the Project).
Screened B in accordance with the EBRD's 2008 Environmental and Social Policy. The environmental and social due diligence is currently on-going and will include an environmental, health, safety and social corporate audit/review of the Company’s capacity and systems to manage environment, health, safety and labour issues in compliance with Russian Federation regulations and the EBRD's Performance Requirements (PRs). Based on the results of due diligence, if necessary, an Environmental and Social Action Plan (ESAP) may be prepared and agreed with the Company to address any environmental and social issues identified within a reasonable time-frame. This PSD will be updated when the results of due diligence are known.
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