All agreed loans

Norway. TINE SA

Date of loan: 31 Aug 2010
Country: Norway
Customer: TINE SA
Amount in NOK: NOK 500 million
Amount in EUR: EUR 62.3 million
Maturity: 12 years
NACE sector / loan type: Manufacture of food products and beverages
Business area: Industries and services

Environmental effect

This loan contributes to climate change mitigation: 100%

Project

The loan has been provided for the construction of a new dairy facility in southern Norway.

TINE is investing in a new dairy facility in southern Norway, which will replace four 50 to 60 year old dairy facilities in the same region. Completion of the dairy is expected in autumn 2011. The new facility will be a modern and cost efficient facility. Energy consumption and CO2 emissions are expected to be reduced significantly, compared with the four existing facilities, in addition to improved productivity and profitability for the company.

TINE is a cooperative owned by more than 15,000 Norwegian dairy farmers. The core business is the processing and sale of milk and milk products, juice, ice cream, ready-made food and marine products. TINE is Norway's largest producer, distributor and exporter of dairy products.

Sustainability summary

The site for the new dairy is located within an industrial area and necessary measures to avoid disturbance from the dairy are to be taken. The water consumption as well as the discharges of wastewater will decrease by more than 40% due to the project. Energy consumption will decrease by approximately 23 GWh annually. The total need for transportation will remain at the current level. The close down of the four dairies has been planned and a closure plan is developed. Tine has no Environmental Management System. A permit for the new operation as well as a BAT study and a monitoring plan to NIB's satisfaction, will be a condition precedent for the project.