PROCTER & GAMBLE DISTRIBUTION

Location:

Ukraine

Project number:

4566

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

10 Nov 1998

Status:

Complete

PSD disclosed:

09 Oct 1998

Project Description

The investee companies are Procter & Gamble Ukraine and Tambrands Ukraine. Both are fully owned subsidiaries of the Procter & Gamble Company (P&G) and are engaged in production and distribution of the P&G range of products in Ukraine.
The project aims to upgrade and expand existing manufacturing facilities, introduce new product manufacturing and packaging capability and develop the internal distribution network.

Transition Impact

This high-profile foreign direct investment in a competitive private sector development will have a transition impact in the areas of technology and skills transfer, setting standards, corporate governance and business conduct. It will have a strong demonstration effect for other global market investment and thus increase the integration of Ukraine into the world market place. It will help to expand competition in other sectors through interaction with suppliers and clients and by lowering transaction costs through local manufacturing.

The Client

The investee companies are Procter & Gamble Ukraine and Tambrands Ukraine. Both are fully owned subsidiaries of the Procter & Gamble Company (P&G) and are engaged in production and distribution of the P&G range of products in Ukraine.

EBRD Finance

US$ 30 million (Euro 25.5 million) equity

Project Cost

US$ 137 million (Euro 116 million)

Environmental Impact

The project has been classified as B/1, requiring an environmental audit and analysis. An independent environmental audit was carried out in 1997 as part of the company’s acquisition of the plant and again in June 1998 as part of the Procter & Gamble (P&G) quantitative worldwide environmental audit system. The audits concluded that the P&G Ukraine facilities have a very low environmental impact. The State Administration of Environmental Safety of Ukraine and the Chief Sanitary Physician of Ukraine confirmed that emission levels from the plant are well below maximum allowable levels and that the level of harmful substances in waste-water discharge via the municipal sewer are in full compliance with legal requirements. The facility will implement P&G’s Environmental Management System, which has been independently verified as complying with both the EU Eco-Management and Audit Scheme (EMAS) and the international environmental standard, ISO 14001. The company has prepared an Environmental Action Plan (EAP) to address the outstanding issues identified in the audits, and a significant part of the investment will be used to implement the EAP and to bring the facilities up to EU and P&G world-wide standards. P&G intends to fully implement all the constituents of their world-wide environmental programme over a five-year period.

Technical Cooperation

None

Company Contact

 

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

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Text of the PIP

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