Salonit

Location:

Slovenia

Project number:

47493

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Target board date:

07 Sep 2016

Status:

Signed

PSD disclosed:

06 May 2016

Translated version of this PSD: Slovenian

Project Description

The provision of a long-term loan of up to EUR 15 million to Salonit Anhovo d.d. ("Salonit", the "Company"), a vertically integrated Slovenian building materials producer.

Project Objectives

The loan will be used to finance energy and resource efficiency investments by the Company, inb particular, the installation of equipment required to increase the ratio of alternative fuels ("AF") as well as to restructure its balance sheet.

Transition Impact

The transition impact of the proposed investment will derive from setting standards of corporate governance and business conduct. Specifically, the project pushes the technological frontier within EBRD countries of operations (and worldwide) by supporting the introduction of hot-disk technology in combination with a chlorine-by-pass system, which will result in significant energy and resource savings.

Client Information

SALONIT ANHOVO, D.D.

Salonit, founded in 1919, is the leading vertically integrated building materials producer in Slovenia, producing aggregates, clinker, cement and concrete. Salonit is headquartered in Anhovo, with facilities concentrated in Slovenia. The Company is owned by Austria-based Wietersdorfer Group (71.6%), Italy-based Buzzi Unicem (25%) and ca. 400 minority shareholders (3.4%) who are primarily (ex-)employees. Salonit 2015 sales amounted to EUR 58.5m, with EBITDA at EUR 15.5m. The Company operates the largest processing facility in Slovenia with ca. 1.3m tonnes linker/year
capacity, which is also one of the most technologically advanced in the EU.

EBRD Finance Summary

EUR 15,000,000.00

Total Project Cost

EUR 15,000,000.00

Environmental and Social Summary

Categorised B. Environmental and social issues associated with the project are site specific and can be readily assessed and mitigated as part of an Environmental and Social Due Diligence ("ESDD"). A fit for purpose ESDD was undertaken by the Bank of the Company. This included a site visit and a review of questionnaires completed by the Client followed by an independent audit and assessment of the Company, its current and past operations as well as the proposed investment program. The ESDD has confirmed that the Company has the capacity to fully implement the Bank's Performance Requirements ("PRs"), and is in compliance with National and EU legislation. Salonit has a dedicated EHS manager and is certified to ISO 14001 and OHSAS 18001. The Company is well managed with good house-keeping, however, due to the sites being in close proximity to residential areas in a valley, there are ongoing needs to manage environmental and social impacts, such as noise and traffic. The plant is located in a sensitive location, with Natura 2000 areas in the near vicinity, although confirmed by the independent audit the Company's operations are not impacting any Natura 2000 site. The Company is developing a comprehensive program to address these challenges together with the local community and local authorities. It should be noted that Salonit has a well-developed site specific stakeholder engagement plan ("SEP") which forms part of a site specific social, environmental, health and safety management system.

Salonit has made progress in addressing environmental liability issues and has made significant investments in environmental abatement system and best practice at the plant and the associated quarry. The cement plant has a valid integrated permit, in line with the requirements of the Industrial Emissions Directive ("IED"), and is subject to regular inspection from the regulators. To ensure ongoing compliance and the implementation of Best Available Techniques ("BAT") in accordance with good international practice, the Company has made significant investments in technological and environmental upgrades, notably upgrading air filters, reducing fugitive emissions as well as further energy and water efficiency measures.

The current on-going investment program and the use of AF will further help to reduce the environmental and social impacts of the plant. The new investment has been assessed by the independent consultant, and this has been confirmed as complying with the requirements of BAT.

The new investment has also been permitted by the local Competent Authorities. The Company is developing a program to manage possible concerns of Civil Society Organization ("CSO") in Slovenia as well as the local community due to the perceived challenges of use of AF.

A Non-Technical Summary ("NTS") and SEP and complaint procedure have been developed for the Project, which will be disclosed on the Company web site.

Summary of the project

Technical Cooperation

None.

Company Contact Information

Dejan Zwitter
dejan.zwitter@salonit.si
+386 5 392 1000
+386 5 392 1073
www.salonit.si
Salonit Anhovo d.d. Anhovo 1 SI-5210 Deskle

Business opportunities

For business opportunities or procurement, contact the client company.

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Text of the PIP

Project Complaint Mechanism (PCM)

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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.