PLM Red Snake Project

completed

Summary Of Project Information (SPI)Project NameRussia-PBCM Beverage Can Project    RegionEuropeSectorProject No007817Projected Board DateJune 2, 1997Company NamePLM Beverage Can Manufacturing CompanyTechnical Partner and/or Major Shareholders The primary Sponsor in the transaction is PLM AB, one of Europe’s leading consumer packaging companies with thirteen manufacturing operations and approximately US$1.2 billion in annual turnover in 1996. The Company develops, manufactures and markets packaging in metal, glass and plastic. In addition to PLM, the Project will also be supported by Ball Corporation, a leading US rigid container company with annual revenues of approximately US$2.6 billion. Through a technology licensing arrangement, Ball will provide the Russian joint venture with state of the art can body technology.Project Cost Including proposed IFC investment US$146 million, including an IFC “A” Loan of US$25 million, a “B” Loan of US$15 million and an equity investment of up to US$5.5 million.Location of project and Description of site The beverage can facility will be constructed in the Naro-Fominsk district of the Moscow region on a 23.5 hectare site. Naro-Fominsk is 70 km southwest of Moscow with excellent road and rail access to serve both the Moscow and Saint Petersburg regions.Description of Company and Purpose of Project IFC will be helping to establish a viable private sector business with important technology transfer, training and environmental benefits. The Corporation is needed to mobilize the limited recourse debt and provide the Sponsors with added comfort in relation to political risk. IFC’s country and sector knowledge will have a positive impact in the attraction of “B” Loan lenders.Environmental Category and Issues This is a category “B” project according to IFC’s environmental review procedure. Environmental, occupational health and safety issues associated with this project include: Potential contamination of the site as a result of previous activities, liquid effluent, employee safety during construction and exposure to noise during operations as well as fire prevention and safety. The Sponsors will work with Russian aluminum suppliers and scrap metal buyers to establish a recycling program.The is from the Public Information Center.Date SPI sent to PIC May 2, 1997For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 676-0365Environmental 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).