Dae Chang Industrial Co. Ltd.

completed

Summary Of Project Information (SPI)Project NameKorea: Dae Chang Industrial Co. Ltd.RegionAsiaSectorProject No009075Projected Board DateAugust 1, 1998Company NameDae Chang Industrial Co. Ltd.Technical Partner and/or Major Shareholders Mr. Si Young Cho, a Korean entrepreneur, and family members own 28% of the Company.Project Cost Including proposed IFC investment Project cost is US$52 million, including proposed IFC investment of US$21 million.Location of project and Description of site Shihwa Industrial Estate, a government-sponsored industrial complex, approximately 50km. from Seoul City.Description of Company and Purpose of Project The Company, with a production capacity of 90,000 tons per annum, is the largest producer of extruded brass and copper alloy products (using recycled non-ferrous metal scraps)in Korea. The project is a financial and operational restructuring of the Company to: (i) meet increased working capital needs imposed by Korea''s economic crisis, (ii) discontinue extensive use of promissory notes at high cost to finance working capital, (iii) meet obligation to redeem convertible bonds in January 1999, (iv) consolidate procurement and distribution functions into one organization, and (v) reduce overall debt-to-equity ratio. IFC''s role is to provide long-term funds which are otherwise not available on reasonable terms. IFC would also help catalyze renewed investor confidence in Korea by investing in and facilitating the restructuring of a local Company with strong commercial potential but currently facing difficulties directly related to the economic crisis.Environmental Category and Issues Category B. Issues of potential concern are: (i) air emissions, (ii) wastewater treatment and disposal, (iii) hazardous and solid waste management, (iv) hazardous materials storage and handling, (v) fire protection and emergency response, (vi) environmental management systems, and (vii) general worker health and safety. Environmental standards and risk management measures meet World Bank guidelines.The is from the InfoShop.Host country location of environmental documentsCompany premises.Date SPI sent to InfoShop July 2, 1998“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) 974-4384Environmental 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).