The proposed project includes modernisation and expansion of RCPM’s paper and corrugated packaging operations in Rubizhne, Eastern Ukraine, and near Kyiv. EBRD will finance part of RCPM’s capital expenditures and working capital increase.
The project is expected to have a good potential for its contribution to the corrugated packaging industry’s upturn in Ukraine and in the region, resulting in:
Development of domestic production of high quality packaging used by international FMCG companies to respond to the growing demand for quality packaging in Ukraine and the neighbouring countries. Thus competition in the sector should be further enhanced.
Recovery at a larger scale of a waste paper collection recycling practices in Ukraine and ensuring a self-supply of core production input for the cardboard industry should contribute to the development of backward linkages in the sector.
The project should also have demonstration effects including the benefits of external funding, supported by the strategic partnership with DS Smith, an UK plc, to expand operations and install modern equipment.
In addition the project would also show the merits of far-sighted energy efficiency and production process integration program in a private sector environment.
Rubizhansky Cardboard and Packaging Mill (RCPM), a joint stock company incorporated in Ukraine with participation of a strategic partner, DS Smith from UK, and a leading producer of paper and corrugated packaging in Ukraine with a domestic market share of 25%.
US$ 14 million term loan
US$ 44 million
The project was screened B/1. Environmental due diligence was carried out on the basis of the Environmental Impact Assessment (EIA) documents (2002) for both Rubizhne (Eastern Ukraine) and Tripolye (near Kyiv) facilities prepared in accordance with Ukrainian law, site visits of EBRD’s environmental specialist, interviews with the environmental, health and safety personnel and local authorities and a review of DSS Group Environmental Policy (2001). The investigations showed that project has obtained environmental, health and safety permits and approval of the regional branches of the State Environmental Review (Expetiza) Committees. The environmental due diligence confirmed that RCPM’s current and proposed operations comply with applicable Ukrainian environmental, requirements with regard to air emission, wastewater discharges, waste management, noise levels, observance of the sanitary protection zone, occupational health and safety standard as well as fire safety. RCPM’s operations are also found to be in line with applicable international standards, such as EU Directive on packaging and packaging waste (94/62/EC). RCPM is the only manufacturer of corrugated paper in Ukraine holding the ISO 9001 quality certificate.
A public information campaign was carried out for the project at the sites of both facilities. No stand alone public consultation meetings were required for either of the sites as neither impinges on residential areas. This is provided that modernisation and expansion at the Rubizhne plant is carried out within an existing territory and the plant in Tripolye is located within the existing industrial zone on the site, which has been in use for nearly 10 years. Analyses confirmed the absence of soil and groundwater contamination on both sites.
The project has intrinsic environmental opportunities resulting from the utilisation of recycled paper as raw material. The investment program will enhance the positive environmental impact through further development of a network of centres for collecting and sorting waste paper, which will promote recycling practices in Ukraine. It will assist the country in solving the problem of waste paper recovery and will save 600 ths. Cub.m of high quality wood annually. Further environmental opportunities arise from better energy and resource efficiency with the installation of a combined heat & power (CHP) gas turbine. The CHP will substitute less efficient boilers and increase recirculation of technological water from 60% to 80%, in line with the best technology in the industry.
An environmental action plan (EAP) developed for the facility in Rubizhne includes measures for improving environmental monitoring, noise protection, upgrading of the closed loop water system, modernisation of the waste water treatment processes and waste management practices. No stand alone EAP is required for the Triploye plant as all the necessary environmental, health and safety mitigation measures have been incorporated into the project design of this new facility.
Mr Gennadiy M. Minin, General Director
Rubizhansky Cardboard and Packaging Mill,
Phone: +38 06453 92210
Fax: +38 06453 501401
For business opportunities or procurement, contact the client company.
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Text of the PIP