A proposed loan of up to USD 40 million for construction and installation of a new PET resin manufacturing facility, operated by a joint venture between Korean and Polish investors. PET is a form of polyester, used in the manufacturing of pre-forms for bottles, especially mineral water and carbonated soft drinks.
Construction of the new PET resin manufacturing facility with 120,000 tpa production capacity (the "Project"). The Project is to be completed in 2004 and will provide SK’s existing customers in the region with product produced in Poland. Currently all product is sourced from their Asian facilities.
The Project would have significant impact on the chemical sector in Poland, which so far has seen little new investment and is in need of substantial foreign direct investment and modern technology to make it internationally competitive. The Project would be the first significant new investment in Poland by a Korean group for many years. The transfer of skills and know-how to the Polish chemical sector is expected to have a strong demonstration effect in the region where the Project would be located, which suffers from unemployment and lack of investments. Moreover, as the PET product is to be exported to other countries of Eastern and Central Europe, it would have positive impact on the Poland’s foreign trade balance, which so far experiences deficits.
SK Eurochem Sp. z o.o., a joint venture company established between SK Chemicals Co. Ltd. ("SK Chemicals"), SK Global Co. Ltd. ("SK Global), both part of the SK group of Korea, and Anwil S.A. ("Anwil") of Poland, a subsidiary of PKN Orlen. The SK group is one of Korea’s leading chaebols, and SK Chemicals is a major global PET producer.
Up to a proposed USD 40 million (EUR 40.3 mmillion) senior loan, comprising:
(i) an EBRD "A" loan of up to USD 15 million (EUR 15.1 million) and (ii) an EBRD "B" loan and/or parallel loans to be syndicated of up to USD 25 million (EUR 25.2 million)
USD 3.3 million (EUR 3.3 million) portage equity representing 10% stake in Skypet.
1 USD = 1.0083 EUR
The total Project costs are estimated at some USD 73 million.
The proposed Project was subject to an Initial Environmental Examination (IEE), which concluded that it was unlikely to be associated with significant environmental issues. The project would not involve a major conversion of the existing Anwil’s facilities nor would it pose any serious accident or health risk. It would not be located in an environmentally sensitive location. Environmental impacts associated with the development could be readily identified, assessed and mitigated. For the above mentioned reasons the project was screened as B/1, requiring an environmental analysis of the proposed development and an environmental audit of the existing Anwil’s facilities, which will be utilised by Skypet or shared with Anwil. The analysis was undertaken by local environmental consultants according to the terms of reference agreed by the Bank and the relevant environmental regulatory authorities. The analysis showed that the project would not involve any significant environmental impacts. Skypet’s product would be PET (Polyethylene Terephthalate), an advanced form of polyester, used in manufacture of pre-forms for bottles and other packaging materials. The production process is likely to generate around 4.5 m3/h of waste water, which can be easily treated in a biological treatment plant. There would also be an insignificant amount of non-hazardous solid wastes. In addition, other potential environmental impacts would involve noise from the PET pellet cutting process and air pollution from the energy production (supplied by Anwil) and the transport to and from the facilities. The Skypet facility would be equipped with modern technology that will meet Polish and EU environmental standards. Noise abatement measures would be taken into consideration in the mill design, aiming at keeping the noise below 60 dB(A) at the perimeter of the plant. Disposable wastes would be either incinerated in the newly commissioned industrial incineration plant, which meets Polish and EU environmental standards or stored in a landfill, which has a 25 year capacity and has also been constructed in line with the relevant EU Directives.
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