SIEMENS - SKV

Location:

Czech Republic

Project number:

28095

Business sector:

Transport

Notice type:

Private

Environmental category:

B

Approval date:

01 Jul 2003

Status:

Complete

PSD disclosed:

06 Jun 2003

Project Description

The proposed project assumes that the Bank would subscribe new capital in SKV, a Prague based manufacturing subsidiary of Siemens, of up to €10 million over three years. The first subscription would be up to €6 million. Proceeds would be used to finance investments into technology and technical upgrade of the plant needed to bring it up to top industry standards.

Transition Impact

Successful restructuring of a major industrial concern through a strategic investor. Privatisation in the early nineties through vouchers and to the managers had mixed results.  The project will have a strong demonstration effect for a number of enterprises in similar situations. Introduction of new products, increase of share of higher value added products and engagement in research and development will contribute to a much needed increase of competitiveness of the Czech industrial sector.  

The Client

SKV is a newly established subsidiary of Siemens AG, which purchased assets of the bankrupt traditional Czech manufacturer of trams and locomotives, CKD DS, in February 2002. SKV re-employed a large number of former employees of CKD DS and started to restructure the operations of the company.  After finalising the restructuring process SKV will become an integral part of the Train Division of Siemens.

EBRD Finance

Portage equity up to Czech Crown equivalent of €10 million.

Project Cost

Up to Czech Crown equivalent of €10 million.

Environmental Impact

The project was categorised B/1 requiring an environmental audit and analysis. The environmental investigations were conducted by independent consultants and included identification of groundwater, soil and construction contamination (Phase II Site Contamination audit) along with a comprehensive evaluation of environmental performance and compliance in the area of water management, hazardous material management and waste management (Phase I audit).  The site contamination investigations confirmed that there was no contamination to groundwater and only small amounts of soil gas contamination were detected in open area of can and drum storage. The Sponsor has confirmed that the paint shop will be removed and a new paint shop constructed in compliance with EU emission standards. All machinery will be new, state of the art and in full compliance with EU standards. In 2002, SKV sold all its property (land and buildings) using a lease-back scheme. Siemens has a comprehensive corporate policy and procedures on environmental, health and safety management, which will be adopted at the SKV site. Siemens is known to the Bank as an environmentally responsible and proactive company and will apply its good corporate standards within the proposed project.

Technical Cooperation

None.

Company Contact

EBRD Office in Prague:
Husova 5
110 00 Prague, Czech Republic
Contact: Ms Zdenka Vicarova
Tel:  +420 222 814 555 Fax: +420 222 814 522
Spolecnost kolejovych vozidel, s.r.o. (SKV)
Evropska 33a, 160 00
Praha 6, Czech Republic
Contact: Klaus G. Aigner, CEO
Tel: +420 2 20322827
 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Text of the PIP

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