The project sponsors are Turkiye Sise ve Cam Fabrikalari Group of Turkey (Sisecam) and Anadolu Cam Sanayii (Anadolu Cam), the glass packaging division of Sisecam. Sisecam is the eighth largest glass producer in the world and will provide technical and marketing support to the project. IFC has a long and well-established relationship with Sisecam Group dating back to the 1960s. Ruscam’s majority shareholder is Anadolu Cam with 52% of shares with the remaining balance being held by two local investors who each hold 24% of the shares.

The total project cost is estimated at $35 million. The proposed IFC investment is an A-loan for IFC’s own account for up to $17.5 million.

17.50 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	17.50
Equity

* These investment figures are indicative

Ruscam’s operations are located in Gorokhovets, Vladimir Oblast (about 335 km east of Moscow) and the third furnace will be installed adjacent to Ruscam’s existing two furnaces and production lines. Ruscam is located in its own industrial park, an approximately 15 ha site, separated from adjacent residential areas.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and labor impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental information submitted by the project sponsor. The following potential environment, health and safety, and labor impacts of the projects were analyzed.

- Compliance of the existing facilities with IFC and Russian environmental, health and safety (EHS) requirements;
- Compliance of the new furnace and associated facilities with IFC and Russian EHS requirements;
- Implementation of the previously agreed Environmental Action Plan (EAP);
- Ruscam’s commitment to quality and efficiency including ISO certifications; and
- Labor and community issues.
Location of environmental documents in locally affected community
The environmental documents will be made available at the following locations: A translation of the ERS is on file locally: 84, Gagarin Str. Gorokhovets, 601481 Vladimir Oblast, Russian Federation The ERS is also available at the IFC Country Office in Moscow: 36, bld. 1, Bolshaya Molchanovka Street, Moscow, 121 069 Russian Federation

In addition to strengthening Russia’s manufacturing base in order to domestically meet the demand for quality glass containers, the project is expected to have the following benefits to the local community: - Job Creation: Ruscam has been the only large-scale investment in the Gorokhovets area since the Soviet era and the surrounding area offers very few other employment opportunities. The project is expected to create approximately 200 incremental, sustainable jobs of which over 100 would be direct employment by Ruscam. - Investment in Human Resources: Sisecam has been transferring best technical practice to its local employees at the shop floor-level and international cost, managerial accounting and financial control know-how to the local management cadre it is developing. In addition to the on-the-job training, Sisecam routinely trains local staff at Sisecam facilities in Turkey. - Small and Medium Sized Enterprises: The company is well integrated into the local economy. The project will continue to offer new opportunities for raw materials and service providers (some of which are locally-owned SMEs) and help foster a more competitive market for such materials and services.