Environmental Review Summary
Project Number
24656
Company Name
CJSC Zeus Ceramica
Date ERS Disclosed
Nov 29, 2005
Country
Ukraine
Region
Europe
Date Revised ERS Disclosed
Mar 10, 2006
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : May 31, 2006
Signed : Jun 21, 2006
Invested : Oct 31, 2006
Sector
Glazed Ceramic Tiles
Industry
other
Department
Regional Industry MAS LAC & EUR
Project Description
The project is Phase 2 of a green-field ceramic tile plant, CJSC Zeus Ceramica (“Zeus”), with a total annual production capacity of 4.3 million square meters of porcelain (ceramic granite) tiles in Slavyansk, Donetsk region. Phase I, the construction and installation of line 1 with an annual production capacity of 2.0 million square meters, was completed in March 2005. Phase II, the installation of line 2 with a capacity of 2.3 million square meters, is expected to be completed in the first quarter of 2007.
Zeus is a joint venture between Emilceramica S.p.A., an Italian tile manufacturer and majority owner in Zeus, and CJSC Yuzhno-Oktiabrskie Gliny Yug (“YUG”), a Ukrainian supplier of clay and kaolin, the key raw materials in the production of ceramic tiles. YUG was started in the early 1990’s as a result of the privatization of several entities, including clay and kaolin quarries. YUG and its 50% owned joint venture CJSC Gliny Donbassa (“Donbass Clays”), which owns 5 quarries, supplies raw materials (clay and sand) as well as semi-finished products (mixes) to Zeus. YUG’s quarry will be depleted in approximately 3 years, while Donbass Clay has reserves for the next 25-50 years. Due to the interdependent structure of this project and its clay supply, both Zeus and Donbass clay operations were visited and reviewed for environmental and social performance during the appraisal.
Zeus is a joint venture between Emilceramica S.p.A., an Italian tile manufacturer and majority owner in Zeus, and CJSC Yuzhno-Oktiabrskie Gliny Yug (“YUG”), a Ukrainian supplier of clay and kaolin, the key raw materials in the production of ceramic tiles. YUG was started in the early 1990’s as a result of the privatization of several entities, including clay and kaolin quarries. YUG and its 50% owned joint venture CJSC Gliny Donbassa (“Donbass Clays”), which owns 5 quarries, supplies raw materials (clay and sand) as well as semi-finished products (mixes) to Zeus. YUG’s quarry will be depleted in approximately 3 years, while Donbass Clay has reserves for the next 25-50 years. Due to the interdependent structure of this project and its clay supply, both Zeus and Donbass clay operations were visited and reviewed for environmental and social performance during the appraisal.
