Translated version of this PSD: Turkish
The EBRD is considering providing a senior secured loan of up to US$ 20 million of to Sarten, a regional leading metal, PET and plastic packaging company. This is a primarily a restructuring loan aimed at extending the maturity of short-term debt incurred to finance its long-term investments in 2010.
When approved by the EBRD’s Board of Directors, specific transition impact objectives will be drawn primarily from the following areas:
Improvement of corporate governance
The envisaged Project will condition the acquisition and full consolidation of Sarten’s Bulgarian operations which is currently directly owned by the Saribekir family. This element of the Project will improve the transparency of the Company’s ownership structure and thus also enhance its corporate governance.
Expansion of new technologies and products aiming at ensuring higher hygiene standards and product shelf-life, in order to increase food quality and availability
The Bank’s Project will support one of the forerunners in the region in terms of development of cutting-edge technologies in the packaging industry.
The Bank’s Project will have a demonstration effect by supporting a company willing to adopt best practice in the industry in respect pollution prevention and abatement.
Sarten is the leading regional metal, PET and plastic packaging company. It is a family owned regional packing company which has 13 production plants in Turkey and the neighbouring countries. It has thrived to become the leader in the regional market by following its clients and investing in new production lines and being in the leading seat of research and development in the sector in the Black Sea region. Sarten is owned by the Saribekir family.
Up to US$ 20 million loan.
US$ 25 million.
Category B. Environmental and social (E&S) issues associated with plastic and metal packaging production are site specific and can be readily identified and mitigated. The Environmental and Social Due Diligence (ESDD) consisted of site visits to production sites and detailed review of the E&S documentation and past audits for IFC and national authorities. ESDD showed compliance with Turkish environmental legislation and confirmed that Sarten has an adequate institutional capacity and management culture to implement the Bank’s PRs, but will also benefit from implementing improvements as outlined in the Environmental and Social Action Plan (ESAP).
Given the size and multi-geography presence, the Company is well managed in terms of quality, environmental, labour and health and safety management. It has the IS0 9001 certified quality management system in place at most of the facilities, as well as ISO 14001 environmental and ISO22000 food safety standards compliant plants. Occupational health and safety management system in compliance with the OHSAS 18001 are planned by 2013.
The current operations as well as investment programme has limited adverse environmental and social impacts. Key environmental ones are related to the air emissions of Volatile Organic Compounds (VOC) from use of solvents for its coating operations and solid waste management practices. To be compliant with international industry benchmark of 100 mg/m3 for VOC (EU Solvents Emissions Directive and IFC EHS Guidelines for Metal, Plastic and Rubber Products Manufacturing) the Company will be required to consider solvents recovery systems installation at some of the plants. Waste management improvements at Silivri plant as well as increase of recycled raw materials for plastics production are included in the ESAP.
The social and labour policies are in place in all plants as per national regulations and Bank’s PRs. With over 2,000 employees, Human Resources management is considered to be adequate and in line with international practices. Key social issue are associated with Occupational Health and Safety risks, including high noise and chemicals exposure of workers and enforcement of personal protective equipment use. Sarten has good practices in terms of information disclosure and stakeholder engagement, but will benefit from introduction of official grievance mechanisms for workers and third parties and regular updates on EHS issues on it website.
The ESAP is developed and address the following issues among others:
- air emissions of VOCs,
- replacement of ozone depleting substances,
- solid industrial waste storage and disposal,
- hazardous substances use and containers disposal,
- noise levels in the production area,
- enforcement of PPE use by workers to reduce injuries,
- official grievance mechanisms,
- regular information disclosure EHSS issues to the general public.
The Company will provide the Bank with Annual Environmental and Social Reports (AESR) and notify on any material accidents or incidents. The Bank will evaluate the Project’s environmental and social performance in accordance with the Bank’s PR’s through reviewing the Client reporting and undertake periodic monitoring visits.
Tel: +90 212 275 76 60
Fax: +90 212 272 34 17
For business opportunities or procurement, contact the client company.
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