Coteminas Textile (previousely Wentex)

completed

Summary Of Project Information (SPI)Project NameBrazil - Wentex Textil S.A.An integrated textile plant to produce plain and printed knitted cotton fabrics for local apparel manufacturers.RegionLatin America and CaribbeanSectorProject No007685Projected Board DateDecember 30, 1996Company NameWentex Textil S.A.Technical Partner and/or Major Shareholders Wentex Textil S. A. is controlled by Wembley S.A., a Brazilian textile holding company. Wembley owns 100% of the company’s common shares and 40% of the total capital of the company. Most of the remaining shares, though publicly traded, are held by 13 equity investment funds. Wembley also has the controlling interest in Coteminas, a leading producer of domestic linen fabrics in Brazil. Project Cost Including proposed IFC investment US$ 114 million. IFC is considering a total investment of US$45 million including: (i) an A-Loan of US$15 million; and (ii) equity/quasi-equity of US$10 million, both for its own account; and (iii) a B-Loan of US$20 million for the account of participant banks.Location of project and Description of site The project is located in the city of Campina Grande, Paraiba State, Northeast Brazil. It is being developed on 367,000 square meters of land in the city’s new industrial estate on the outskirts of the urban area. The site is adjacent to the main highway to the East and adjacent to Embratex, a spinning mill being developed by Coteminas, a sister company. Description of Company and Purpose of Project Wentex Textil S.A. is responsible for Wembley’s investments in the knitted textile segment of the industry. The project will be the company’s second knitted textile plant. The first, a 62 million pieces/year T-shirt production plant in Natal (also in northeast Brazil)started production in July 1996. The project will produce 24,000 tons/year of knitted cotton fabrics for the domestic market. The fabrics will be offered to local apparel manufacturers at much lower prices than is now possible due to inefficiencies in the industry. Environmental Category and Issues Category B. The main issues include air emissions, liquid effluents, solid wastes, fire safety, and employee protection from noise and dust. The plant will recycle water to minimize usage. An in-house biological effluent plant will provide effluent quality within the World Bank’s guidelines. The Industrial estate’s effluent lagoon will provide additional polishing for effluent from the project. No metal based pigments will be used by the project. Cotton waste will be recycled or sold to other users. Sludge from the effluent plant will be used as fertilizer or delivered to the city’s landfills together with non-recyclable waste. Fire safety measures will include fire extinguishers, water hydrants and hoses, and emergency exits. Air filtering and temperature and humidity control will reduce the level of cotton dust and where necessary workers will wear masks to reduce exposure to dust and hearing protection in noisy sections. On-site doctors will provide constant care and carry out regular health checks on all employees. IFC will monitor compliance with the World Bank’s Policies and Guidelines through environmental performance reports and periodic site reviews.The is from the Public Information Center.Date SPI sent to PIC      November 27, 1996For 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).