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Gorenje
Environmental & Social Review Summary

This Environmental and Social Review Summary is prepared and distributed in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board of Director’s decision. Board dates are estimates only.
Any documentation which is attached to this Environmental and Social Review Summary has been prepared by the project sponsor and authorization has been given for public release. IFC has reviewed this documentation and considers that it is of adequate quality to be released to the public but does not endorse the content.
Project number 25689
Country
Southern Europe Region(IDA)
RegionEurope and Central Asia
SectorHousehold Appliances (Including Refrigerators, Laundry Machine, Dishwashers, etc.)
Department
Company nameGorenje, d.d.
Environmental category:B
StatusActive
Date ESRS disclosedApril 16, 2010
Previous EventsInvested: June 24, 2010
Signed: June 7, 2010
Approved: May 20, 2010
View Summary of Proposed Investment (SPI), click here

OverviewCategory &

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& Mitigation
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Engagements
Client's

Documentation

Overview of IFC's scope of review
IFC’s environmental and social review of this project included: (i) review of information provided by Gorenje (“the Group” or “the company”) in response to social and environmental questions, (ii) site visits to the company’s production facilities in Velenje, Slovenia and Valjevo, Serbia, (iii) review of the Environmental Impact Assessment for Gorenje plant in Valjevo, prepared in accordance with Serbian regulations and (iv) follow up discussions with Gorenje management. In addition the appraisal assessed EHS aspects associated with Gorenje's Ecology, Energy and Services Division business line activities related to the establishment an integrated network of waste collection and processing plants in the Western Balkans.
Project description
The Gorenje Group (“Gorenje” or the “Group”), the largest household appliance manufacturer in former Yugoslavia and among the top 10 manufacturers of appliances in Europe is seeking equity and senior debt financing to (a) support its 2010-2013 modernization, restructuring, and expansion plan; and (b) re-structure debt due to mature in 2010-2011, to enable the Group to achieve its strategic plans following the economic crisis (“the project”). Expansion includes green field development i.e. refrigeration / freezers plant in Valjevo, construction of which started in March 2006 and was completed in October 2006.

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