The proposed project is to construct and place into operation a greenfield plant for a production of hollow porous brick blocks in the Kyiv Region, and upgrade and expand existing production lines at the plants of SBK located in the cities of Irpen’, Kharkiv and Romny for the total annual production of 262 million of brick units. The transaction will provide a company with a strong long-term competitive position on the market of construction materials in Ukraine.
The project will contribute to increasing profile of Ukraine and if successful, could result in attracting other greenfield investments. The project will contribute to restructuring and modernization of a major player in the country’s building material sector and enhance efficiency and competition in the brick and construction material sector in general.
SBK is a leading facing brick and a major ceramic brick producer in Ukraine.
USD 9.82 million equity financing.
USD 35.6 million.
The project was screened B/1.
Independent environmental due diligence, including a site visit by the Bank’s Environmental Specialist confirmed that whilst there are a number of outstanding environmental, health and safety issues that need to be addressed, overall the Company’s operations are of a high standard and SBK has a strong commitment to implement EU standards throughout the facilities.
All of the outstanding issues are contained in an environmental action plan (EAP).
Levels of health and safety awareness among staff appear high and procedures are very well documented and adhered to.
All necessary environmental permits are in place; fire protection and fire control are satisfactory and all potential dangerous machinery and hazardous materials is adequately controlled.
The environmental investigations also confirmed that all new equipment will be sourced from the leading European suppliers and in compliance with EU standards.
The Company will review site drainage and examine measures that are in place to collect, treat and remove water in order to prevent potential contamination of other land or water.
The development of Poroton bricks is likely to lead to significant improvement of environmental and energy efficiency standards of new buildings in Ukraine. Poroton-type brick is the most ecologically sound product of all walling materials available as it contains no chemical additives. Also, in contrast to a foamed concrete, Poroton absorbs and releases atmospheric moisture, which makes premises built with poroton comfortable and human-friendly (no condensation is accumulated as is the case of foamed concrete).
The Company has implemented ISO 9001 in Romny and are in the process of developing a management system for occupational health and safety (OHSAS 18001). Implementation of the Environmental Management System (ISO 14001) will be completed within two years.
Labour protection and human resource management is also very well developed and there a wide range of documented policies and procedures covering recruitment, dismissal, redundancies, equal opportunities etc.
- The Company will be required to provide the Bank with an annual environmental report, including updates on the EAP, and notification on any material accidents of incidents.
Mr. Igor Dalichuk
2B Mykilsko-Slobidska street, Kyiv 02002
tel: + 380 44 467-6757
fax: +380 44 516-8564
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
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