The Board of Directors of the World Bank has approved the provision of EUR 40 million to public joint-stock company Ukrplastic (Kyiv) by the International Finance Corporation (IFC).
According to the IFC’s website, the decision was made on December 15, 2017.
Currently the IFC does not have other projects pending approval of the Board.
According to the published materials, the IFC plans to provide EUR 20 million for its own account and up to EUR 20 million of a syndicated or mobilized financing to Ukrplastic to expand and modernize the group’s operating capacities as well as strengthen its balance sheet through re-profiling of its debt portfolio.
The project cost is approximately EUR 60 million.
The project sponsor is Immer Group, a leading supplier of flexible plastic packaging for consumer goods, the owner of Ukrplastic.
IFC said that Immer Group is a 100% family owned business with facilities in Kyiv, Ukraine and Ventspils, Latvia. The group is presently owned by Irina Mirochnik and her three daughters. Ukrplastic’s main facilities are located in Kyiv. The site occupies an area of 11.3 ha, housing 34 buildings with a total built-up area of 74,000 square meters.
The company developed an additional new plastic packaging and processing plant, Immer Digital located in Ventspils. This was very strategic for the company to increase its market base and supply to its customers in Europe and new markets. The plant became operational as of February 2017. This facility, includes limited operations such as digital printing, solvent-less lamination, solvent based and water based lamination and coating, pouch making, manufacturing of label and thermo-shrinkable label, whereas the main ingredients such as BOPP film are supplied from Ukrplastic’s Kyiv operations.
In addition, the company is supported by distribution warehouses used to store the product and for delivery to clients. The company currently has 15 warehouses on site in Kyiv and 11 warehouses in Russia, Europe and Ukraine.
The proposed project entails investment in development of new products, including products for the agricultural sector; refinancing of some loans coming due and investment in the company’s Latvian entity. Specific use of proceeds will be for: equipment for recuperation and reclamation of used solvents in liquid form and solvent vapors; new lamination equipment for specialty packaging; and new roto-printer, enabling higher flexibility.
Ukrplastic is the largest manufacturer of flexible plastic packaging for consumer goods in Eastern Europe.
