Summary of Proposed Investment
Project Number
8083
Company Name
OAO Borsky Stekolny Zavod
Date SPI Disclosed
Jun 27, 1997
Country
Russian Federation
Industry
Manufacturing
Status
Completed
Sector
Glass and Glass Products (Including Glass and Mineral Wool)
Department
Gbl Ind, Manufact, Agribus & Services
Environmental Category
B - Limited
Previous Events
Approved : Aug 14, 1997
Signed : Dec 1, 1997
Invested : Dec 1, 1997
Project Description
Summary Of Project Information (SPI)
| Project Name | Russia: Borsteklo |
| Region | Europe |
| Sector |
Projected Board DateJuly 29, 1997
Company NameAOOT Borsky Stekolny Zavod
Technical Partner and/or Major Shareholders
The sponsor is a major international producer of flat glass for the automotive, construction and furniture markets, with manufacturing facilities in several countries. Following completion of the share purchase and capital increase, the Company will be 75%-owned by a consortium consisting of the following: Sponsor, 26.5%; IFC, 19.1%; EBRD, 19.1%; Alfa Capital, 7.9%; and management, 2.4%. The sponsor intends to increase to a majority shareholding through the exercise of various put and call options with other shareholders.
Project Cost Including proposed IFC investment
Project cost: $58.9 million. Proposed IFC investment: $15.0 million in up to 19.1% of the company’s common shares.
Location of project and Description of site
The project will be located in the town of Bor, about 15 kilometers from Nizhni Novgorod. The Company is located on a 73 hectare site on the bank of the Volga River.
Description of Company and Purpose of Project
The project is aimed at the acquisition and partial modernization of AOOT Borsky Stekolny Zavod, one of Russia’s privatized manufacturers of flat glass for the automotive and construction markets. A capital increase will be used to finance a limited two-year expenditure plan aimed at: improvement of the furnaces, general production and environmental controls, and additional working capital. The sponsor intends to undertake a full renovation consisting of two furnace cold repairs and expanded downstream processing capacity, estimated to cost up to $95 million and to be implemented over the next five years.
Environmental Category and Issues
This is a category B project according to IFC’s environmental review procedure. Environmental, health and safety issues include air emissions, liquid effluent, solid waste and worker exposure to high temperatures, noise and dust. An environmental assessment of the plant site and existing operations has been completed. A Corrective Action Plan (CAP) to bring the plant into compliance with World Bank guidelines has been agreed with the project company and sponsor, and its implementation will be a condition of IFC’s investment.
The is June 26, 1997 from the Public Information Center.
| Date SPI sent to PIC | June 27, 1997 |
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
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