MCS Beverages

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MCS Coca Cola has undertaken the construction of a Greenfield bottling plant in Ulaanbaatar that will be partially financed by EBRD. In addition to sparkling soft drink beverages and still water, the new plant will enable MCS Coca Cola to develop local production of products that are currently imported and develop new products to meet local tastes and needs. The project will also include a waste water treatment plant that will also be attached to the neighbouring MCS – APB brewery. The project’s transition impact will be derived from import substitution, competitive enhancement with a broader choice of quality beverages, demonstration effect of international marketing and sales practices and example of improved environmental practices, including energy efficiency and water recycling. MCS Coca Cola is a fully owned subsidiary of MCS Group, one of the largest business groups in Mongolia with activities spanning beverages, IT, construction, textiles and mining. EBRD will provide a syndicated loan to partially finance the construction of the Greenfield brewery. To be confirmed. MCS Coca Cola has provided the Bank with a range of information on the environmental, health, safety and social issues associated with their operations. MCS Coca Cola has confirmed that it is compliant with national requirements for environment, health, safety and labour. The Company has developed an environmental policy and an environmental management system which addresses the key areas of quality, safety, environment and supplier interactions. This management system is compliant with the Coca Cola standard and is comparable to ISO 14001. MCS Coca Cola sets targets for improvement across a range of areas and monitors achievements against those targets. Important forthcoming actions include the installation of a waste water treatment system which will allow the Company to recycle water up to five times prior to discharge to the municipal sewage system (once treated). The Company will provide that Bank with an annual report to confirm on-going compliance with the required standards and to update the Bank on the implementation of the management system. None. Mr. Gankhuyag (CFO) E-mail: ganhuyag@mcs.mn