Ceramic Tile AF

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Mauritius-based Brightstar Investment Limited (“Brightstar” or the “company”) – an African ceramic tile manufacturer - is jointly owned by two Chinese sponsors: 51% by KeDa Clean Energy Co. Ltd. and 49% by GuangZhou SunDa International Trading Co. Ltd. (collectively the “sponsors). KeDa is one of the world’s largest ceramics machinery producers and is publicly listed on Shanghai Stock Exchange. SunDa is a private trading company focused on Africa.IFC is considering a financial package (consisting of both debt and equity) to Brightstar to finance its capital expenditure program to (i) expand an existing ceramic tiles manufacturing plant in Ghana and (ii) construct/finalize completion of greenfield ceramic tiles manufacturing plants – one each in Senegal, Cameroon, Mozambique, Democratic Republic of Congo (DRC) and Zambia (the “project”).  The Ghana plant is operational since 2017 and is currently producing ceramic tiles using two kilns with a current combined output of about 10 million sq. meters of tile a year. The company’s Kenyan plant became operational in 2016 and currently produces over 21 million sq. meters of tile per year. The Senegal operation started operation in 2019 is currently producing tiles from one production line (and the construction is nearing completion for the expansion work as part of the proposed project). The manufacturing plants in Cameroon, Mozambique, Zambia and DRC are at different stages of planning and the land is being identified / purchased for these.Ceramic tile production process involves: -          raw material receipt and storage (limestone, sand. clay, talc, etc.), -          crushing and mixing of raw materials in one of several ball mills (balls used are made of aluminum and are consumed in the process), -          silo storage and drying the mixture in a spray tower, -          forming (pressing or extrusion) the mixture, -          drying followed by a first firing, -          addition of glaze and second firing (for double fired glazed tiles), or simply glazing and firing (for single fired glazed tiles). packaging and storage for shipment