Banvit Bandirma Vitaminli Yem Sanayi Anonim Sirketi

completed

- Technical Partner and/or Major ShareholdersBanvit Bandirma Vitaminli Yem Sanayi Anonim ªirketi (the company) is majority-owned by members of the two Turkish families who established Banvit in 1968. In 1994, Banvit became publicly listed on the Istanbul stock exchange. The shareholders of the company and their respective shareholdings are: Mr. Sitki Koçman (26.1%), Mr. Vural Görener (20.71%), Mr. Faruk Ebubekir (17.62%), Mr. Feridun Görener (17.26%), and the Turkish public (18.31%). The project''s sponsors are the Görener and Ebubekir families.- Project Cost Including proposed IFC investmentThe total project cost is estimated at $78 million. The proposed IFC investment is $25 million (about 31%) of which $15 million will be in loan, and up to $10 million in equity. The balance will be covered by cash generation.- Location of project and Description of siteBandirma, where Banvit is headquartered, is located on the Marmara Sea, approximately 60 miles west of Bursa. The company''s processing operation is located on the outskirts of Bandirma, approximately 5 miles inland form the city. Breeder and broiler outgrower farms are located within a 40 miles radius of Banvit''s plants. - Description of Company and Purpose of ProjectBanvit was established by the Koçman and Görener families as an animal feed producer in 1968. In 1984, the company entered the chicken processing business. Today, Banvit is a leading integrated poultry producer in Turkey with capacity to process 16,000 birds/hr and a hatchery that incubates 1.9 million eggs/week. Banvit is undertaking the expansion and modernization program in order to: - increase its existing chicken processing capacity from about 58.5 to about 120 thousand ton p.a.; - enter the turkey growing and processing business with a capacity of about 28 thousand tons p.a.; and - increase its share of higher margin value-added products. The proposed project entails investments in:- a new furhter processing plant; - a new multi-purpose breeder/turkey processing facility; - expansion of an existing chicken processing plant; - a new feed mill;- expansion of the hatchery;- two new water treatment facilities;- expansion of cold storage facilities; and- a new rendering plant.By supporting Banvit, IFC will play a role in promoting higher efficiencies, sanitary standards and best practices throughout the Turkish poultry industry. As a shareholder, IFC will contribute to strengthening corporate governance at the company and will enhance its ability to access sources of long-term capital.The project''s development impacts will result from its contribution to the growth and efficiency of private broiler outgrower farming in Turkey and to the economic growth of the Bandirma region. The project is expected to generate approximately 300 new jobs at Banvit.- Environmental Category and IssuesThis is a category B project according to IFC’s environmental review procedures and the following issues were considered during appraisal: site selection and location of new facilities, air emissions, wastewater handling and treatment and impacts on surface and groundwater, solid waste handling and disposal, hazardous materials handling and management, use of CFCs in cooling systems, corporate environmental management, fire protection and emergency response, general worker health and safety, and relations with outgrowers.The land to be acquired for the project is for agricultural use. The project will not result in resettlement, economic displacement or loss of natural habitats. Expansion of the facilities conforms to local and national planning requirements and appropriate development permits have been obtained.The project will be designed to comply with the World Bank Group standards with respect to air emissions, water use and effluent quality, as well as solid waste and chemicals handling and management. Employees receive appropriate training in health and safety, and those subject to particular risks (i.e. de-boning lines) are provided with appropriate protective equipment. All employees receive training in hygiene and fire safety as well as first aid. The Sponsor has confirmed that contractual relations and agreements with outgrowers conform to Turkish requirements. These commitments will be included in any future expansion of outgrower farms.The company has a corporate environmental policy that has been endorsed by senior management and specific responsibilities for environmental issues have been designated. The company has applied for ISO 14000 certification and is already HACCP and ISO 90002 certified. The is from the InfoShop.Host country location of environmental documentsILCE SAGLIK MUDURLUGU, BANDIRMA(Local Government Health Directorate, Bandirma)Date SPI sent to InfoShop March 8, 2000“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) 473-7711Fax: (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).