Project description
and objectives:
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The proposed project is with OJSC Biomedsklo, a Ukrainian glass producer based
in Zitomir, Ukraine. Yioula Glassworks of Greece acquired Biomedsklo in 2005
and has commenced a restructuring and modernisation effort. The proposed
project is being presented as Phase II of project ID 34977, Stirom Romania
approved by the Bank’s Board of Director on 5 April 2005
Yioula is seeking the Bank’s support to complete the post-acquisition
restructuring process, to proceed with the expansion of the Company’s glass
container plant.
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Transition impact:
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Transition impact is expected to be:
Strong demonstration effect through successful restructuring post acquisition
of an existing operation via refurbishment and restructuring investment
programmes that will bring the quality up to more mature standards, energy
savings and operational efficiency improvements.
Demonstration effect of new replicable behaviour/activities, transfer of
know-how and overall improved corporate governance. The Sponsor has agreed to
a framework of covenants including acceptable MIS, arms length relationships
within the Group including transfer pricing, improved internal controls, IFRS
accounting and comprehensive reporting that go beyond the requirements of its
principal lenders.
Contribution to market development and consumer benefits: The Project will
enable a leading food-packaging manufacturer to maintain expansion in a
growing and dynamic market and ensures its competitiveness, through the
interaction with other parts of the “food chain”
The project is consistent with the Bank’s Energy Policy (BDS00-010) as it
involves reduction of energy and maintenance costs and improvements in the
general reliability.
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The client:
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OJSC Biomedsklo, a Ukrainian glass container producer, located in Zitomir,
Ukraine (the “Company” or “Zitomir”), a majority owned subsidiary of Yioula
Glassworks SA, the largest producer of food and beverage containers and
machine-made glass tableware in Greece.
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EBRD finance:
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A EUR 10 million senior secured A/B loan to Zitomir, of which EUR 6 million
will be provided by participant banks.
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Total project cost:
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EUR 10 million in a first phase.
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Environmental impact:
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The project has been screened B/1. Independent environmental consultants have
been retained to undertake the required environmental audit and analysis of
the Biomedsklo facilities and any resulting recommendations will be formalised
in a time-bound, costed environmental action plan. The action plan, which
will be agreed with the Sponsor, will aim to ensure compliance with both
Ukrainian and relevant EU environment, health and safety standards. The
Company will be required to provide the Bank with an annual environmental
report on the implementation of the environmental action plan and on any other
environment, health and safety issues affecting their operations.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Yioula Glassworks S.A.
Mr. George Fragoulis, CFO
5 Orizomylon Str.
122 44 Aegaleo
Athens,
Greece
Business tel. +30 210 540 3415
Business fax +30 210 544 2421
Email: gfragoulis@yioula.gr
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EBRD contact:
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Tarek El Sherbini, Operation Leader: elshert@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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