11171 - Tigar

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Environmental Review Summary

Project Number

11171

Company Name

Tigar M.H.

Date ERS Disclosed

Oct 31, 2001

Country

World Region

Region

Global

Environmental Category

B - Limited

Status

Active

Previous Events

Approved : Jan 2, 2002
Signed : Mar 26, 2002
Invested : May 17, 2002

Sector

Automotive Tires

Industry

other

Department

Gbl Ind, Manufact, Agribus & Services

Project Description

The project supports the growth and strategic development of Tigar Rubber Products Company, a leading tyre and rubber goods producer in Yugoslavia and the Balkans. After a decade of war and international isolation, the company''s production capacity and product competitiveness have been substantially challenged. Despite its difficult environment, Tigar succeeded in continuing its operations and managed to carry on its long lasting commercial-technical Joint Venture (JV) with BF Goodrich and, since 1997, with Michelin Tires of France after Michelin North America''s acquisition of Goodrich. Tigar''s tyre business represents about 75% of Tigar''s turnover, the balance being generated by production of footwear, industrial technical rubber products, sport goods, adhesive and paints. The project involves: (i) debottlenecking and expanding its tire production capacity which currently operates at 100% capacity and completing process improvements which allow production of Michelin brand premium high speed tires, increasing production from 10,000 tyres/day to 16,500 tyres/day by end 2002; (ii) balance sheet restructuring to better match assets and liabilities, namely provide urgent working capital and refinancing of short term bridge loans; and (iii) assisting Tigar in restructuring non-core businesses and assets through a parallel technical assistance program financed by bilateral donors. IFC will provide Tigar a corporate loan for these purposes.

Environmental and Social

The sponsor has presented plans to address these issues and to demonstrate that the proposed project complies with applicable Yugoslav laws and regulations and IFC requirements. The information provided about how these potential impacts are being addressed by Tigar is summarized below:

Site Contamination due to Past Practices. Tigar has retained a Danish consultant COWI to complete Phase 1 and 2 environmental audits for both the Pirot and Babusnica tire plants. The audits found very limited soil contamination from hydrocarbons on both sites. No groundwater contamination is evident on the sites. Based on the results of the audits Tigar has agreed to a Corrective Action Plan with IFC. The Plan will focus on the construction of secondary containment around existing chemical, fuel and waste storage facilities as well as the proper disposal of wastes currently stored on-site.

Air emissions. The main air emissions at both plants are associated with the operation of the steam boilers. At the Pirot plant the 2 main steam boilers are fuelled by lignite coal with 1 reserve boiler fuelled by coal and another by fuel oil. The coal fired boilers have air pollution control equipment in operation. In Babusnica the single boiler is powered by fuel oil. The air emissions from the plants are monitored on a regular (monthly) basis by the Government of Yugoslavia’s Institute for the Quality of the Environment. A review of the data collected so far for CY2001 indicates that the boilers at both plants comply with the requirements of both the Government of Yugoslavia (Ministry of Health and Environment) and IFC. The Yugoslav Government also monitors ambient air quality near the plant as well as in the center of Pirot–again ambient air quality meets Yugoslav and IFC requirements year round. There is an increase in particulates in the ambient air in the urban areas during the winter months as coal and wood are widely used for heating purposes.

Effluent discharges. Tigar''s operations produce very limited volumes of liquid effluents. These effluents (industrial, stormwater and domestic) are collected and discharged to the municipal sewer system. Cooling water from the boilers is handled in a closed loop system and thus there is no discharge. Some liquid effluents are pretreated prior to discharge to the plant’s sewer system (e.g. wastewater from the boiler softener units). Wastewater discharged to the municipal sewer system must comply with the requirements of a sewer use bylaw. Liquid effluents from the two plants are regularly monitored and currently comply with both Yugoslav requirements and those of IFC. As part of the site upgrading plans company management have agreed to upgrade the plant’s sewer system by for instance separating stormwater from the liquid and domestic effluents. This would allow Tigar to discharge uncontaminated stormwater direct to the environment.

Solid and hazardous waste management. Tigar generates a wide variety of solid and hazardous wastes, including, for example, packaging waste, waste oils, cured and non-cured rubber, plastics, wood, metal scrap, and domestic solid waste. These materials are appropriately segregated and managed through various approaches in accordance with relevant requirements and good industry practice. For example, cured and non-cured rubber, plastics, waste oils, steel and wood scrap, and waste paper are all sold for recycling. Other non-reusable or recyclable wastes are trucked to and disposed at a licensed municipal landfill, as are domestic solid wastes.

Chemicals/fuels storage and handling. Tigar use a large number of hazardous and non-hazardous materials in their production processes. These are transported to the plant sites by road and rail. Tigar has developed a detailed Raw Material and Waste Management Program to ensure that each chemical is handled and stored properly and in compliance with international best practice. Heating and process oils are stored in both above ground and underground tanks. As indicated above a number of these tanks require the construction of secondary containment to minimize environmental problems associated with any spills and Tigar has committed to this program. Signage and security at the plant’s are up to international standards.

Emergency response planning and preparedness. Tigar has developed and implemented emergency response and preparedness programs for their plants. This includes emergency response plans, procedures for using inspecting, testing, and maintaining emergency response equipment, fire safety measures, alarms and equipment, and training for all employees in fire safety and emergency response procedures every three months.

Employee health and safety. Tigar has implemented appropriate employee health and safety programs to protect the safety and health of all employees. Activities include control and monitoring of workplace air quality and noise, pre-employment and periodic medical examinations, provision of safety procedures and practices, the training of personnel in first aid, accident prevention, noise and hearing protection, handling of hazardous chemicals, proper control and maintenance of equipment, and safety procedures, and the maintenance of records of job-related accidents and injuries. Medical staff are continuously available on-site and health clinics and hospitals are located nearby. Management meets regularly to review injury incidents and other accidents, and develops and implements necessary programs to prevent these from reoccurring.

ISO Certification
Tigar received the first ISO 9000 quality certification in 1996. A Quality Manager has been appointed and corporate environmental staff report to the Managing Director. In addition, each plant has its own environmental, health and safety (EHS) staff who report to the plant’s manager but who receive overall guidance from the corporate EHS team. Company management has committed to update their ISO 9000 to the year 2000 level (by April 2002). In addition, the company has agreed to introduce ISO 14001 (Environmental Management System) certification, again with the aim of completing this by April 2002. It is proposed that Tigar’s operations will be audited against ISO 9000 and 14001 in May 2002, with official ISO certification received by mid to late 2002. Tigar’s JV partner Michelin will provide assistance in these activities.

Environment Investments
Tigar has agreed to commit about US$600,000 over the next 2 years from the proposed investment program to cover the following:

construction of secondary containment at a number of chemical, fuel and waste storage facilities;
upgrading of plant sewers including the segregation of uncontaminated stormwater;
installation of industrial wastewater pretreatment prior to the discharge of the liquid effluent to the plant sewers; and
purchase of air and wastewater monitoring equipment.

Social Issues
Tigar has a long history of active involvement in the communities. Tigar and its employees are one of the economic mainstays of both Pirot and Babusnica. In addition to the indirect impact of the salaries paid to Tigar employees, the company regularly pays taxes directly to the communities, provides cash resources to for instance help to rebuild schools and places of cultural and historic interest, provides resources to support students at all levels, and provides sports facilities, libraries and other recreational opportunities. Relationships with the labor unions are very good and Tigar has placed a high value on training and education of their staff.

Conclusion & Monitoring

IFC will evaluate the project''s compliance with the applicable environmental and social requirements during the lifetime of the project by:

Reviewing the annual monitoring reports (AMRs) prepared for the project covering ongoing performance of project-specific environmental, health and safety and social activities addressed by IFC environmental and social policies and guidelines; and
Conducting periodic site supervision visits.

This Environmental Review Summary (ERS) is prepared and distributed in advance of the IFC Board of Directors' consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board of Director’s decision. Any documentation that is attached to this ERS has been prepared by the project sponsor or in conjunction with the project sponsor and authorization has been given for public release. IFC has reviewed this documentation and considers that it is of adequate quality to be released to the public but does not endorse the content. The following ERS is disclosed in accordance with IFC's Disclosure of Information Policy that went into effect September 1998.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Environmental Review Summary

Project Description

Environmental and Social

Conclusion & Monitoring

Similar Projects

Projects

Environmental Review Summary

Project Description

Environmental and Social

Environmental Category B Disclosure Requirementsy

Environmental and Social Issues

Proposed Mitigation for Environmental and Social Issues

Conclusion & Monitoring

Conclusion

Monitoring and Compliance

Press-Release

Related SPI

Similar Projects

Disclaimer