CHAPECO COMPANHIA INDUSTRIAL DE ALIMENTOS (CHAPECO)

completed

Summary Of Project Information (SPI)Project NameBrazil - Chapeco II     RegionLACSectorProject No.003500Projected Board DateJuly 3, 1995Company NameChapecó Companhia Industrial de AlimentosTechnical Partner and/or Major Shareholders The main operating company of the Chapecó group, Chapecó Companhia Industrial de Alimentos (CCIA), is 97.2% owned by S. A. Indústria e Comércio Chapecó (SAIC), the Chapecó’s Group holding company. Besides CCIA, SAIC has two subsidiaries involved in road and air transport. SAIC is listed in the São Paulo stock exchange.Project Cost Including proposed IFC investmentUS$60 million. Proposed IFC Investment: “A” Loan: US$15 million “B” Loan: US$5 million and equity of up to US$3 million.Location of project and Description of site The production facilities to be expanded and modernized are located as follows: one poultry processing plant and two pork processing plants are located in the State of Santa Catarina do Sul, and one poultry plant is located in the State of São Paulo.Description of Company and Purpose of Project Chapecó Companhia Industrial de Alimentos is undertaking a US$60 million expansion and modernization program to upgrade and expand its operations, strengthen distribution and reinforce its capital structure. Chapecó Companhia Industrial de Alimentos is the fifth largest poultry and fourth pork meat processor in Brazil, and operates two integrated poultry facilities (Xaxim and Amparo) and two pork facilities (Chapecó and São Carlos). The proposed expansion and modernization program would include (i) debottlenecking investments to help increase production to meet increasing market demand; (ii) an investment in training and quality control to meet the rising quality and health standards in its main export markets (the EU and Japan); (iii) investments in distribution necessary for the increase in production; and (iv) a strengthening of the Company’s financial structure. The proposed program will have significant developmental and environmental benefits. Among others, the program will benefit the 2,000 outgrowers and contract farmers that supply livestock to Chapecó’s processing plants. The proposed program builds on the Company’s prior expansion and modernization project, which started in 1993 and which was supported by IFC through both loan and equity (IFC/R93-185).Environmental Category and Issues This is a category B project according to IFC’s environmental review procedure. Environmental and occupational and health issues associated with this project include air emissions, solid waste management, liquid effluents, safe handling of food additives and CFC free equipment.The is from the Public Information Center.Date SPI sent to the PICMay 23, 1995For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 676-0365Environmental 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).