Ambro

completed

Summary Of Project Information (SPI)Project Name:Romania: Ambro Pulp and PaperRegion:Central and Southern EuropeSector:Project No:009448Projected Board Date:April 26, 1999Company Name:Ambro Pulp and PaperTechnical Partner and/or Major Shareholders The project sponsor is Sical, an international cardboard producer incorporated in France. The Rossmann family, Sical''s owner, has been in the paper industry since 1922 and today it owns five corrugating material entities, of which Sical is the largest. Sical holds 89% stake in Ambro.Project Cost Including proposed IFC investment Total project cost is US$70.7 million including an IFC A-loan of up to US$12.85 million.Location of project and Description of site The Company, located in Suceava, 500 km north of Bucharest in Romania, is an integrated pulp and paper mill. The site is located in the middle of the town surrounded by other furniture, textile and machinery factories. Description of Company and Purpose of Project The investment program is principally aimed at plant modernization and improvement of environmental standards. The project will ensure the long run viability of Romania’s largest and the only privately owned pulp and paper mill by modernizing its inefficient technologies, without which Ambro would not be able to compete with other regional pulp and paper mills. Consequent to investment, Ambro will supply high-quality packaging paper demanded by its major Romanian customers in the beverage, furniture, and household appliance sectors, leading to positive downward developments. In line with investment, a substantial percentage of investment is geared toward the upgrade of the Company’s environmental practices keeping them in line with the World Bank’s environmental guidelines.Environmental Category and Issues This is a category B project according to IFC''s environmental and social review procedure. An environmental audit identified a number of environmental issues, and IFC''s Environment Division has also visited the plant identifying problem areas and necessary actions to address these issues. The major problem areas identified include: air emissions; wastewater treatment; solid waste management; soil and groundwater contamination; fire safety; and application of worker health and safety requirements. The Sponsor has committed to bringing the Company into full compliance with applicable World Bank Group environmental and health and safety policies and guidelines. Planned plant upgrading will contribute significantly to addressing the air emissions issue. The Company is preparing a Corrective Action Plan, for IFC''s approval prior to first disbursement, which will specify actions and schedule to address the outstanding issues. IFC is requiring that an environmental site audit be carried out to delineate the extent of soil and groundwater contamination and prepare remediation plans. The Company is also required to have a fire safety review carried out and to review solid waste management and prepare plans for handling these wastes. Forestry issues have been reviewed, and forest management in Romania is generally carried out on a sustainable basis.The is from the Public Information Center.Date SPI sent to PIC:March 25, 1999“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384Environmental 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).