Warsaw, Poland, Oct. 14 -- The International Finance Corporation (IFC) has signed a US$18 million financing agreement for Intercell Spolka z o.o, Poland's second-largest producer of unbleached packaging paper for commercial and industrial use, which will enable the company to bring its operations into compliance with local environmental standards and World Bank guidelines. IFC will provide a loan of up to US$11 million equivalent and will make an equity investment of up to US$7 million equivalent. The Finnish Fund for Industrial Cooperation and the Nordic Environment Finance Corporation are also investing in the project. As part of its US$55 million investment program, Intercell will install and upgrade air emission controls, reduce water consumption, and improve wastewater treatment. The project will also help the company improve production efficiency and product quality, reduce operating costs, and expand capacity, enabling it to take advantage of an expected increase in demand for industrial paper in Polan
d. Intercell hopes to become a fully integrated packaging company by converting all of its paper production to higher value added products within five years. Intercell is owned 46% by Intercellulosa AB, a privately held Swedish company; 35% by OZCP, a company wholly owned by the Polish government; 7% by Paged, a privatized Polish paper distribution company; and 12% by Wisapak OY, an affiliate of the two major Finnish forestry companies, Kymmene OY and Enso-Gutziet OY. "Intercell has been a successful early privatization in Eastern Europe, thanks to the combination of foreign capital and know-how and a domestic producer with a solid operating record and strong competitive position," said Mr. Jannik Lindbaek, IFC's Executive Vice President. "This project reflects IFC's commitment to helping improve environmental standards on a commercial basis in the region," he added. IFC is a member of the World Bank Group and is the largest multilateral source of equity and loan financing for private sector projects in devel
oping countries.
