All agreed loans

Norway. Nortura SA

Date of loan: 23 Aug 2011
Country: Norway
Customer: Nortura SA
Amount in NOK: NOK 315 million
Amount in EUR: EUR 40.3 million
Maturity: 10 years
NACE sector / loan type: Production, processing and preserving of meat and meat products
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 slaughterhouse in Malvik, in Sør-Trønderlag in central Norway.

The project is part of the process of increasing the effectiveness of Norway's meat and egg supplier, Nortura. The new slaughterhouse will replace four of Nortura's old slaughterhouses, as well as a meat processing plant in Trondheim. In addition, three slaughterhouses owned by meat company Spis Grilstad will be replaced due to a cooperation agreement between Nortura and Spis Grilstad. The Malvik slaughterhouse will be Norway's largest for cattle and sheep.

Nortura expects to more than halve their energy consumption due to the replacement of older slaughterhouses by a new modern facility. The energy reduction in Spis Grilstad comes in addition.

The new slaughterhouse, which was finalised in August 2010, will also significantly reduce water usage.

Nortura SA is among the leading processors of meat and distributors of eggs in Norway. The company is organised as a cooperative owned by approximately 17,800 farmers. Nortura has industrial operations in 34 municipalities in 15 counties, with approximately 5,800 employees.

Fulfilment of NIB's mandate

This project will have a significant effect on the reduction of energy and water consumption. The project has received a good environmental mandate rating and moderate competitiveness mandate rating.

Sustainability summary

The most significant environmental issues associated with slaughterhouse operations are water consumption, discharges to water and use of energy. The use of water and energy will decrease by approximately 50% due to the replacement of old slaughterhouses.

The permit for the operation requires that process wastewater undergoes chemical/biological treatment in compliance with BAT and that the content of organic matter is reduced by 70% measured as BOD and by 75% measured as COD before being discharged. A wastewater treatment plant has been installed, but the biological treatment does not work and has been taken out of operation. However, monitoring results from the two first months of 2011 indicate that the reduction requirement is being complied with, but with almost no margin of error. Since the reduction requirement is being complied with, the deviation has been considered acceptable to NIB.