PROJECT

Projects

Environmental & Social Review Summary

Project Number

39713

Company Name

ENGEE PET MANUFACTURING COMPANY NIGERIA LIMITED

Date ESRS Disclosed

May 13, 2020

Country

Nigeria

Region

Africa

Last Updated Date

Jun 12, 2021

Environmental Category

B - Limited

Status

Pending Disbursement

Previous Events

Approved : Jun 19, 2020
Signed : Jul 10, 2020

Sector

Plastics Material and Resin

Industry

Manufacturing

Department

Regional Industry - MAS Africa

Project Description

Engee PET Manufacturing Company Nigeria Limited (“Engee” or the “company”) is a subsidiary of the JOTNA Group (“Jotna” or the “sponsor”), a mid-sized conglomerate in Nigeria with main subsidiaries in plastics, beverages, and trading. Engee was set up in 2014 in Igbesa Village, Ogun state, Nigeria (about 60 km from Lagos:  https://goo.gl/maps/uhvSvwJk8nSrK8if6) to manufacture food-grade Polyethylene Terephthalate (PET) resins used to make plastic bottles and is currently Nigeria’s second biggest PET resins plant, thanks to the fast-growing demand for plastic bottles in the country and west Africa. The current plant, commissioned in 2017, consists of an SSP (Solid State Polymerization) unit with a production capacity of 150,000 tonnes per annum (tpa), where imported amorphous PET is processed and converted to bottle grade PET that can be used by bottle manufacturers.

 

Following completion of the SSP unit, Engee plans to commence backward integration of its operations by manufacturing the main raw material (amorphous PET) in-house. The proposed expansion (the “project”) will involve setting up a Continuous Polymerization (CP) unit and will enable Engee to manufacture amorphous PET from two imported raw materials (viz., purified terephthalic acid (PTA) and mono-ethylene glycol (MEG). Engee is also incorporating design features in their project to accommodate the use of recycled plastics in the production process. IFC intends to invest up to US$39m to facilitate this project, which will not increase the current production capacity of Engee, but will focus on improving cost efficiency of the process

Overview of IFC's Scope of Review

IFC environment and social (E&S) appraisal conducted between 17 and 20 February 2020 comprised: (i) a site visit to the Engee offices in Lagos and a meeting with Engee’s management team and Chairman of the Board of Directors; (ii) a site visit to Prima Foods, the current supplier of amorphous PET to Engee; (iii) a visit to Engee’s operational PET plant and assessment of the plant operations, including interviews with plant operations management team and selected contractors; and (iv) a review of the project environmental and social impact assessment report, company E&S policies and procedures and other documents.

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Broad Community Support

Environmental & Social Action Plan