Financed ProjectsJSC Concern Stirol

Identification Code:

OP/02/0377

Total Operation Cost:

0

Maturity:

60 months

Operation Status:

Description and Purpose of the Operation:

The operation involved financing for the upgrade of STIROL's main production lines, as well as the establishment of new manufacturing facilities for chemical products.

Countries of Operation:

Ukraine (100,00 %)

Financial Product:

Loans

Sector:

Materials

Domain:

Private

Borrower/Client:

Joint Stock Company Concern Stirol is a leading producer of nitrogen fertilizers in Ukraine.

Co-Financiers/Participants:

Guarantors/Sponsors:

Developmental and Regional Cooperation Impact:

The operation assisted STIROL to improve its competitive position in the domestic market and also promoted regional cooperation via increased exports to other countries of the Black Sea region

Environmental Classification and Impact (summary):

According to the BSTDB screening categories, the project has been screened as B0. During the Environmental Assessment process the following key environmental issues related to the Borrower's activity were identified: 1) Air emissions containing ammonia, ammonia nitrate, urea particles, nitrogen oxides, sulfur oxides, carbon monoxides; 2) Storage and handling of raw materials (chemicals); 3) Solid and hazardous wastes consisting of used catalysts, activated coal, slurries, ammonia nitrate, and sulphuric acid. Despite the fact, the Borrower's production activities involve mainly chemical processes and products, which by their nature bear very high EH&S risks and impacts, the Borrower remains one of the cleanest and reputable manufacturers of chemical products in Central and Eastern Europe. It is mainly due to the successful EMS applied in all production facilities, certified in 2002 by Bureau Veritas according to ISO 14001. Implementation of the EMS according to ISO 14001 standards provided a number of direct environmental benefits, such as the reduction of harmful emissions from the combustion of fossil fuels, ammonia, and ammonia nitrate. Moreover, it enabled the Borrower to control more efficient harmful emission by monitoring, documenting, and planning for further reductions. The Borrower has proven to run its business in a very transparent and proactive way, where every community member can freely obtain any information regarding the environmental aspects of the Borrower's production facilities and environmental safety in Horlivka town, as well as address its concerns and discuss them with the plant management. The Borrower was required to implement the Environmental Action Plan (EAP) prepared jointly with the Bank, follow the subject legal requirements in effect in Ukraine, as well as report on annual basis on progress towards accomplishing the EAP and general EH&S performance.

Operation Leader:

General Industries, Transport, Tourism 1

E-mail:

gitt1@bstdb.org