Ruscam Expansion

completed

The project is an approximately $20 million expansion of the Ruscam glass bottle production plant in Garokhovets, Russia for which IFC has been asked to provide a loan of up to a $10 million equivalent. The venture entails the installation of a furnace with 315 tons/day of glass making capacity and four IS, bottle-forming lines, adding an expected $22 million per year in incremental sales revenue for OOO Ruscam (Ruscam, or the Company). Ruscam is 51.85% owned by the Sise ve Cam Group of Turkey with other investors holding the balance. The project aims to address the rapidly growing demand in Russia for beverage bottles manufactured to international quality standards. Most domestically sourced bottles suffer from a high breakage rate and associated drawbacks when utilized on higher-speed filling lines which, with the beverage industry's investment in improved filling technology, have become increasingly more common in Russia. For their highest quality bottle requirements some bottling operations, especially breweries, have had to rely at least partly on imported bottles, which are very expensive as a result of bottles’ high bulk/low value character.