Acindar Industria Argentina de Aceros S.A.

completed

Summary Of Project Information (SPI)Project NameArgentina: Acindar Industria de Aceros S.A.RegionLatin America and CaribbeanSectorProject No009220Projected Board DateSeptember 30, 1998Company NameAcindar S.A.Technical Partner and/or Major Shareholders A significant portion of the Company’s stock is owned by the Acevedo family who, through a combination of “A” and “B” shares, control approximately 25% of Acindar. The balance of the Acindar’s shares are traded on the Buenos Aires Stock Exchange where it is one of the most actively traded stocks. Project Cost Including proposed IFC investment The total project cost is estimated at US$275 million. IFC is considering a total new investment of US$50 million including an "A" Loan of US$25 million for its own account and a "B" Loan of US$25 million, for the account of participants.Location of project and Description of site The proposed project consists of an expansion and modernization of the Company''s steel-making shop and rolling mills, including: (a)enhancing the steel-making shop productivity at Villa Constitucion, Province of Santa Fe ; (b) setting up a new bar mill, at Villa Constitucion, Province of Santa Fe; (c) upgrading the wire drawing operations at both Villa Constitucion and La Tablada, Province of Buenos Aires; (d) opening three new distribution centers. Description of Company and Purpose of Project Acindar is a world scale integrated steel producer using the DRI/EAF process and employing state of the art technology. It is the largest producer of non-flat steel products in Argentina and is fully integrated downstream with a product range of over 200 product lines and a total annual production capacity of 1.25 million tons. The Company recently implemented Phase II of the comprehensive modernization program which allowed Acindar to increase production capacity, introduce new value-added products and enhance market presence. The Company is continuing the modernization with Phase III of the program, designed to further improve its operational and commercial performance. IFC has been closely involved with Acindar’s strategy to secure its position as a competitive steel producer. Environmental Category and Issues This is a category B project according to IFC''s environmental review procedure because the specific impacts that may result can be avoided or mitigated by adhering to generally recognized environmental performance standards, guidelines, or design criteria. Environmental issues associated with this project include: site location; land use and habitat modification at each of the three distribution centers; air emissions; water supply; liquid effluents and solid waste disposal; local employment and socioeconomic impacts; fuel storage and handling; and general occupational health safety including employee exposure to heat, noise and dust. Environmental evaluation of control equipment design and mitigation actions for the new plant and environmental audits of the existing facilities will be used to verify compliance with World Bank guidelines and policies.      The is from the InfoShop.Date SPI sent to InfoShop August 26, 1998“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).