American Plast S.A.

completed

Summary Of Project Information (SPI)Project NameArgentina: American Plast S.A.RegionLatin America and the CaribbeanSectorManufacturingProject No009373Projected Board DateFebruary 10, 1999Company NameAmerican Plast S.A.Technical Partner and/or Major Shareholders American Plast produces plastic containers for packaged foods and for the fast food industry in Argentina and also exports to Brazil and other Mercosur countries. The Company is the largest player in the rigid packaging area, with 1998 sales of US$38 million and assets of US$38 million. American Plast is 80%-owned by Dixie Toga S.A., the largest packaging company in Brazil with 1997 sales of US$337 million. The rest of American Plast’s shares trade on the Buenos Aires Stock Exchange.Project Cost Including proposed IFC investment Up to US$20 million, financed by bank loans and internal cash generation. IFC will provide a US$10 million Standby loan, to be drawn upon if necessary. IFC will also subscribe to upto US$0.35 million in warrants exercisable into shares of American Plast’s parent company, Dixie Toga S.A.Location of project and Description of site Argentina, Province of Buenos Aires. The Company''s existing plant is located in Olivos, Province of Buenos Aires, in an industrial area. The site includes two buildings: a) the head office with two production areas for injection molding and thermoforming; laboratories, storage and shipping areas; and b) the extrusion and polypaper production area with large storage and warehousing facility. The total covered area is 12,000 sqm, taking about 80% of the site. The Company’s new site is in an industrial park area in Pablo Nogues, Province of Buenos Aires, 20 kms north from the existing plant. Total site area is 120,000 sqm, with 10,000 sqm covered area. Description of Company and Purpose of Project American Plast is in the process of undertaking a US$20 million modernization and expansion program that will enable it to strengthen its position in the rigid packaging area and to diversify into other segments of the packaging market.Environmental Category and IssuesThis is an environmental review category B project. Key environmental, health and safety issues associated with the project include: land use modification at the proposed new plant site, liquid effluents, hazardous substances, air emissions, solid waste disposal, storage and handling of chemicals, environmental performance of existing facilities, fire safety and emergency preparedness, and employee training. The sponsor has presented plans to address these issues and demonstrate that the proposed project will comply with applicable governmental and World Bank requirements. The new facility will be in Pablo Nogues, 20 km from Buenos Aires and it will be located in a large industrial park-type area. The industrial wastewater generated at the existing facility from the cleaning of floors and blow down from the cooling system is discharged to the municipal sewage system. A dedicated wastewater treatment facility will be installed at the Pablo Nogues facility. Air emissions will be controlled by a filter system of suction and conduction through the piping to collect particulates. American Plast has established a Corrective Action Plan to address the high noise level in some areas at the existing facility. The company has developed emergency and contingency plans in the event of accidents and fire. The sponsor will establish training programs that will include fire protection, use of fire fighting equipment, housekeeping and hygiene, and general health and safety procedures. A fire brigade will be formed.The is from the InfoShop.Date SPI sent to InfoShop      January 7, 1999“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) 974-4384L:\SPI\SP9373.DOCJanuary 7, 1999 10:21 AMEnvironmental 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).