PROJECT

Projects

Environmental & Social Review Summary

Project Number

37450

Company Name

Ukrplastic,PAT

Date ESRS Disclosed

Mar 7, 2017

Country

Ukraine

Region

Europe

Last Updated Date

Jun 12, 2021

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Dec 15, 2017
Signed : Dec 18, 2017
Invested : Jan 4, 2018

Sector

All Other Chemical Product

Industry

Manufacturing

Department

Regional Industry - MAS ECA

Project Description

Immer Group  (the “group” or the “sponsor”) , a leading supplier of flexible plastic packaging for consumer goods, is a 100% family owned business with facilities in Kiev, Ukraine and Ventspils, Latvia.  The group’s primary company, Kiev-based OSJC Ukrplastic (“Ukrplastic” or the “company”), was established in 1932. 

Ukrplastic’s main facilities are located in downtown Kiev, on the left bank of Dnipro river ( https://goo.gl/maps/hs6dTH7MQ9u ). The site occupies an area of 11.3 ha, housing 34 buildings with a total built-up area of 74,000 sqm. The establishment of the industrial facilities dates back to 1927, and since 1997 this facility is wholly owned by Ukrplastic. However, only some of the buildings are currently in use for the production processes and logistics. The company’s Kiev facility manufactures flexible packaging materials that includes the production of coextruded blown film and biaxially oriented polypropylene or BOPP film, and other surface treatments such as vacuum metallization, prepress process, flexographic/rotogravure printing, solvent-less, solvent based or extrusion lamination and coating as well as pouch making.

The company developed an additional new plastic packaging and processing plant, Immer Digital located in Ventspils, Latvia– about 2.5 hours to the capital city of Riga. The company bought and installed all new equipment and machinery in the leased building. This was very strategic for the company to increase its market base and supply to its customers in Europe and new markets. The plant became operational as of February 2017. This facility, includes limited operations such as digital printing, solvent less lamination, solvent based and water based lamination and coating, pouch making, manufacturing of label and thermo-shrinkable label, whereas the main ingredients such as BOPP film are supplied from Ukrplastic’s Kiev operations.

In addition, the company is supported by distribution warehouses used to store the product and for delivery to clients.  The company currently have 15 warehouses on site in Kiev and 11 warehouses in Russia, Europe and Ukraine and all the warehouses and leased/rented. 

The proposed project entails investment in development of new products, including products for the agricultural sector; refinancing of some loans coming due and investment in the company’s Latvian entity. Specific use of proceeds will be for: (i) equipment for recuperation and reclamation of used solvents in liquid form and solvent vapors; (ii) new lamination equipment for specialty packaging; and (iii) new roto-printer, enabling higher flexibility.  The project cost is approximately  60 million. The IFC investment is expected to consist of an IFC loan for its own account of up to  20 million and an IFC syndicated or mobilized financing of up to Euro  20 million.

Overview of IFC's Scope of Review

IFC’s appraisal of this project consisted of site visits, review of technical, environmental and social (E&S) information submitted by the company and meetings/interviews with company’s management and plant managers and staff. The IFC team visited Ukrplastic’s main operations in Kiev during January 24th – 26th 2017; and Immer Digital plant in Ventspils, Latvia on February 3rd 2017.  Meetings were held at corporate and plant level with the managers and teams responsible for the environmental, human resources (HR), occupational health and safety (OHS) and social responsibility operations of the company.

The team also reviewed the environmental, social, health and safety (ESHS) information provided by the company, including: (a) the existing Environmental and Social Management Plans (ESMPs) as currently approved by the local environmental authorities and environmental permits; (b) the company’s Environmental, Social and Health and Safety Management Systems (ESHS MS) manuals and supporting documents, c) Environmental and OHS procedures, plans and records, (d) the company’s HR policies and procedures including those for management of contractors and subcontractors; e) Emergency preparedness and response plans; and f) waste management and hazardous materials management practices.

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Broad Community Support

Environmental & Social Action Plan