Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.
- Project name
- Can-Pack (Ukraine) Ltd.
- Project ID
- Fiscal year
- Guarantee holder
- Investor country
- Host country
- Environmental category
- Gross exposure
- $4.0 million
- Project type
- Environmental and Social Review Summary for Can-Pack (Ukraine) Ltd.
MIGA has issued a $4.0 million guarantee to Can-Pack S.A. of Poland covering its new investment in Can-Pack (Ukraine) Ltd. The new investment will be in the form of equipment and raw materials, to modernize an existing production line. MIGA is currently providing coverage to Can-Pack S.A totaling $49.4 million against the risks of transfer restriction, expropriation, and war and civil disturbance.
Can-Pack S.A.—through subsidiary Can Pack (Ukraine) Ltd.—is the largest producer of beverage cans in Ukraine and fourth largest beverage can producer in Europe. The project involves the replacement of old can necking equipment, which is producing 50-cl beverage cans, with new one and extending line capability with machines and tooling for production of 33-cl cans. It also involves transfer of technical know-how in operating the new equipment into Ukraine.
The plant has been operating since 2003. Can-Pack’s decision to upgrade the equipment to produce the 33-cl aluminum beverage cans in Ukraine is driven by an increase in demand from the soft drink companies, such as Coca-Cola and Pepsi, as well as from the local and regional breweries. Additionally, the demand for 33-cl cans is also growing from neighboring countries, especially Russia, Kazakhstan and Belarus. The production of 33-cl cans in Ukraine will allow Can-Pack to maintain its competitiveness in the expanding beverage market in Ukraine in particular and the region in general. Can-Pack is currently addressing the need by procuring the 33-cl cans from Poland, in turn incurring high transportation costs, which impact its competitiveness.
MIGA’s continuing support to Can-Pack (Ukraine) is consistent with the World Bank Group Country Partnership Strategy for Ukraine for 2008-2011. Enhancing technological updates in the manufacturing sector and promoting the modernization of production align with the first pillar of the CPS— sustaining growth and improving competitiveness.
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