Stirom

complete

The proposed investment project is with Stirom SA, largest Romanian glass manufacturer, based in Bucharest, Romania. Yioula Glassworks of Greece acquired Stirom in 2003 and commenced a restructuring and modernisation effort. Yioula is seeking the Bank’s support to complete the post-acquisition restructuring process, to proceed with the expansion of the Company’s glass container plant and possibly to support its further regional expansion, through: (a) Phase 1 Refurbishment of one furnace and other production and distribution investments. The project will also bring considerable energy savings and operational improvements, principally via lowering costs, better utilisation of capacity and plant specialisation. It will also aim to modernise its packaging processes and warehouse facilities. (b) Phase II To be utilised either to (i) refurbish an additional furnace or (ii) to provide acquisition finance for further regional expansion. Transition impact of the proposed project is expected to be derived from the following: Stirom SA Romania, a glass container producer, located in Bucharest, Romania, subsidiary of Yioula SA, the largest producer of food and beverage containers and machine-made glass tableware in Greece. Stirom is a joint stock company, listed on the Romanian RASDAQ Stock Exchange. Up to EUR 20 million senior secured loan for investment purposes with full corporate guarantee from Yioula. EUR 44 million. The project was screened B/1 requiring an environmental audit and an environmental analysis. These studies were carried out by independent environmental consultants in November 2004. The general conclusion of the consultants was that environment, health and safety issues have been well managed by the Company. Stirom has the required environmental permits to operate and the compliance programme including in its authorisation has almost been completed. Some issues related to air emissions, hazardous substances and energy conservation were noted by the consultants and actions to address these issues have been incorporated into an environmental action plan. The action plan has been reviewed and agreed by the Company, implementation of which should ensure compliance with both national and relevant EU environment, health and safety standards. Key amongst the actions required is the need to apply for an integrated permit to ensure compliance with the EU's IPPC Directive. In accordance with national and Bank requirements, a public announcement on the project was in a newspaper, presenting information on the project, and inviting people to express any concerns. The Company will provide the Bank with an annual environmental report. None. George Fragoulis, Yioula Group’s CFO 5 Orizomylon Street 122 44 Aegaleo Athens Greece Tel: + 30 210 540 3415 Fax: + 30 210 544 2421 E-mail: gfragoulis@yioula.gr