Release date: 19 January 2009
Promoter – Financial Intermediary
Progroup AGLocation
Description
The transaction is for financing of the expansion and upgrade of the borrower’s production facilities in Eastern Germany and in Poland.
Objectives
The additional containerboard production capacity in Germany is expected to reduce the company’s need to purchase paper from the Asian markets, thereby also allowing further corrugated board production capacity expansion in Poland. Furthermore, the investments are contributing to further vertical integration of Progroup’s paper/corrugated board business value chain which is expected to have a positive impact on the company’s competitive position and cost structure going forward.
Being located in Eastern Germany and indirectly encouraging the collection and use of waste paper, the project contributes to the EU objectives of supporting convergence regions as well as promoting the sustainable use of natural resources.
Sector(s)
Proposed EIB finance (Approximate amount)
EUR 240 million.
Total cost (Approximate amount)
EUR 480 million.
Environmental aspects
The new containerboard production plant (Paper Machine PM2) falls under Annex I of the EIA Directive 85/337/EEC and requires an EIA. It is also included in the Council Directive 96/61/EC of 24 September 1996 concerning Integrated Pollution Prevention and Control and has to have a permit issued in accordance with this Directive. Full environmental details will be assessed during the appraisal, including possible impacts on protected flora and fauna (Habitats’ 92/43/EEC and Birds’ 79/409/EEC Directives). Corrugating plants are based on a dry process and are not listed in Annex I or II of the EIA Directive.
Procurement
The promoter is a private company that is not operating in the Utilities sector, and is thus not covered by EU Directives on procurement. The promoter carries out competitive international consultations among potential suppliers for goods and services, which is standard practice for this industry.
Status
Signed - 25/11/2009
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).