Ruscam (formerly Urshelsky Glass Packaging)

completed

The project entails the installation of a furnace for glass production and three manufacturing lines to produce international-quality beverage bottles. The project is expected to have a positive impact on Russia''s transition to a market economy. Sisecam''s proposed investment is the first large-scale investment in and around Garokhovets since the Soviet era. The venture will complete a plant site whose development was halted approximately ten years ago, when a local enterprise ran out of capital to complete its development. The project is expected to provide over 200 direct jobs to the local workforce and may have as large an impact in terms of indirect employment. Once operational, the facility will add a domestic source of competitively priced, quality beverage containers in the Russian market, which is currently a net importer of glass bottles. Sisecam is a world-class bottle manufacturer and the project''s local management cadre and workers can be expected to benefit from the transfer of best practice in cost and managerial accounting and financial controlling.The IFC investment would support the regional expansion of a project sponsor from one of IFC''s countries of operation into another IFC country of operation where the sponsor has comparative advantages based upon the industry know-how it has developed over the past decades. Sisecam has been an IFC client in Turkey and hopes to benefit from IFC''s project finance experience in Russia. Further, through its involvement in the project, IFC is also directly addressing its goal to mobilize relatively scarce foreign direct investment and know-how into the Russian Federation.