Dixie Toga

completed

Summary Of Project Information (SPI)Project NameBrazil-Dixie TogaRegionLatin AmericaSectorProject No008566Projected Board DateFebruary 16, 1998Company NameDixie TogaTechnical Partner and/or Major Shareholders Dixie Toga is a publicly held company by virtue of a listing of non-voting preferred shares. The Company, however, remains privately controlled, with virtually all of the voting common stock held by two major shareholders, the Haberfeld Family (71%) and Mr Roberto Klabin (17%). Project Cost Including Proposed IFC Investment The estimated project cost is US$60 million. The proposed IFC investment consists of US$15 million in equity.Location of Project and Description of Site The project consists of (i) capacity expansions, including a new flexographic plant to meet increased demand in the southern part of the country and a new extrusion thermoforming plant to be located in the North East of Brazil; and (ii) modernization and rationalization of the Company’s existing facilities in Brazil and Argentina.Description of Company and Purpose of Project(include IFC’s Role and Development Impact) Dixie Toga is a major Brazilan packaging company with total sales in 1996 of US$270 million. In response to increased competition in the packaging market in Brazil, Dixie Toga has embarked on a strategy to strengthen its position through a combination of new investments and strategic acquisitions which will allow it to broaden its product range and realize significant cost savings in operating costs. IFC’s investment will help to finance Dixie Toga’s investment program and enhance the Company’s ability to compete with multi-nationals that are entering the Brazilian market. IFC will also assist Dixie Toga in completing its transition from a family-owned entity to a professionally run company. Environmental Category and Issues This is an environmental review category B project; principal issues involve land use modification at the new plant sites, effluent treatment and disposal, air emissions, solid waste disposal, use of non-toxic or low toxicity inks and dyes, storage and handling of reagents and hazardous materials, and worker exposure to heat and fumes. The sponsor has presented plans to address these issues and demonstrate that the proposed project will comply with applicable governmental and World Bank requirements: The process effluents generated at Dixie Toga are recycled into the process. The plant using Cr in its process has a closed loop system and recycles effluents back to the process. The sludges are collected by and independent contractor and disposed of according to local regulations. Solid waste are either recycled or sold to other industries. Dixie Toga does not store any hazardous materials on site. The company provides its employees with training programs including the operations of machinery and fire prevention measures. Personal protective equipment (PPE) including: ear plugs, gloves and goggles are provided to employees.The is January 23, 1998 from the Public Information Center.Date SPI sent to InfoShop January 16, 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).