The proposed MPF project will co-invest in the brick and roof tiling industries in the EBRD’s countries of operations (mainly SEEC and some of CIS countries) jointly with Wienerberger AG of Austria, the leading brick and tile producers in the world (the “Sponsor”).
The Sponsor’s investment programme for the next 4 years is estimated to be around € 180 m. The investments can be in either greenfield plants or acquisition of existing operations and may also include expansion and modernisation investments.
The transition impact of the proposed MPF facility is expected to be as follows:
Strong demonstration effect through the entry of a reputable foreign investor who will promote higher standards of corporate governance. This is especially important in countries in our region where this sector has so far not benefited from much foreign direct investment, and still lacks adequate financing to upgrade production processes
Contribute to significant technological, environmental and marketing transfer of know-how to other companies, enhanced competition and consumer benefits. As with any modern and strong industrial investor entering into new markets, the effect on local industry will be significant as it will bring new, modern technology and impose quality and reliability on the sector. The efficiency in the sector is expected to increase, the competition will be enhanced and the consumer choices will be further increased.
Wienerberger AG (Austria) or the Sponsor is the world leading producer of bricks and a leader in European roof tile, paving and pipe markets. Market capitalisation is over €1.7 billion and turnover in 2003 was €1.83 billion with an estimate for 2004 of over €1.7 billion following the de-consolidation of Pipelife Group. The Sponsor is part of EuroStoxx 500 given its 82% free-float market capitalisation on Vienna Stock Exchange.
The Group operates c218 production sites in 23 countries. In regional terms, the Group’s activities are centred on continental and eastern Europe and the US. Its strategy for next years is to consolidate their position in existing markets and continue its expansion plans with a focus on Eastern Europe and CIS countries
The EBRD’s financing will be up to €50 million and aims to cover up to 35% of the projects costs or the specific company’s long term capital. It will be in the form of either portage equity and/or debt to the specific company.
Estimated €180 million.
The MPF has been classified C/1. The environmental and health and safety (EHS) issues associated with the MPF are related to the sub-projects to be financed. The sub-projects are in sector that typically involve a wide range of potential environmental issues that are defined by the nature of the proposed investment (a new or existing operation). In line with the Bank’s previous MPF arrangements, the Facility is regarded similar to FI operations, where the Bank ensures proper implementation of its environmental mandate while respecting the principle of delegated responsibility. Each sub-project will be a subject to agreed environmental procedures that mirror the Bank’s own environmental appraisal and monitoring process. Wienerberger will conduct environmental due diligence on all projects financed through this Facility in accordance with EBRD's "Environmental Procedures for Multi Project Facilities". Wienerberger is committed to structure sub-projects to meet national EHS regulations, Wienerberger’s corporate EHS standards and good international industry practice. Sub-projects may include an Environmental Action Plan for achieving these standards within reasonable timeframe acceptable to the Bank. A corporate environmental review, which made use of the environmental due diligence carried out for the Bank’s project with Wienerberger in Romania in 2003, showed that Wienerberger has adequate corporate environmental and health and safety standards and is committed through its Environmental Policy to carry out its operations in compliance with relevant national and EU environmental standards.
Each sub-project will be reviewed and approved by the Bank on the basis review of the environmental due diligence report prepared by Wienerberger. An annual environmental report will be submitted to the Bank on the project companies encompassed by the Facility.
The sub-project has been classified B/1. Wienerberger has acquired existing clay extraction and brick manufacturing facilities in Sibiu, Romania, and intends to modernise and expand the production of the plant. The main parts to be reconstructed will be the preparation, dryer, kiln and loading and unloading facilities. Wienerberger has carried out an environmental audit and an environmental analysis of the project in accordance with EBRD's "Environmental Procedures for Multi Project Facilities". Investigations did not identify any significant environmental issues associated with past and present operations. Wienerberger will reconstruct the facilities to meet applicable Romanian and EU environmental standards. This will result in significant environmental and energy efficiency improvements. Given the increase of the production, the total environmental impacts have been assessed to remain at the same level as before the reconstruction. Wienerberger will introduce its corporate EHS standards to the operation and management of the plant.
Mr Stefan Huber
Tel: + 43 1 60 192-482
Fax: +43 1 60 192-9482
E-mail address: email@example.com
Website: www. wienerberger.com
For business opportunities or procurement, contact the client company.
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