Grupo Irsa S.A. de C.V.

completed

Summary Of Project Information (SPI)Project NameMexico: GIRSA IIRegionLatin America and CaribbeanSectorProject No009531Projected Board DateJune 24, 1999Company NameGIRSA S.A. de C.V. (GIRSA)Technical Partner and/or Major Shareholders GIRSA is a fully-owned subsidiary of DESC, S.A. de C.V. (DESC), a large industrial conglomerate in Mexico. The company has major market shares in carbon black, synthetic rubber and chemical consumer products in Mexico. DESC is a diversified holding company with four principal subsidiaries active in automotive parts, chemicals, agribusiness and real estate, respectively, Unik, GIRSA, Agrobios and Dine. Project Cost Including proposed IFC investment The project''s cost is estimated at about US$315 million. It will modernize and expand production facilities and develop new products and markets. IFC has been asked to structure a bankable financial package and provide a US$105 million loan, of which US$60 million would be for the account of institutional investors.Location of project and Description of site GIRSA''s production facilities are located in Tampico (synthetic rubber, carbon black), Salamanca (adhesives, sealants), Coatzacoalcos (phosphates, polystyrene), Tlaxcala (polystyrene), Lecheria (phosphates, emulsions), Vallejo (adhesives), Lerma (adhesives, laminates), Ocoyoacac (acrylics), San Luis Potosi (acrylics), Cosoleacaque (phenol, acetone, methylmethacrylate), Tula (acetone), Zitacuaro (laminates), and Queretaro (pigments).Description of Company and Purpose of Project GIRSA S.A. de C.V. (GIRSA) is a major producer of synthetic rubber, carbon black, adhesives and sealants for industrial and consumer purposes, phosphates, polystyrene, acrylics, emulsions, pigments and decorative laminates. GIRSA is the only producer of synthetic rubber and carbon black in Mexico and has a dominant position in the adhesive and sealant markets. The project consist of approximately US$315 million investment program designed to improve GIRSA''s overall competitiveness by expanding capacity, increasing energy efficiency, developing new products, promoting joint-ventures, and enhancing safety, environment and health standards. Environmental Category and Issues This is a category B project for environmental review purposes. Issues include air emissions, liquid effluents, spill prevention, solid and liquid wastes, fire prevention and emergency response, and control of employee exposure to chemical substances. The sponsor has presented plans to address these issues and demonstrated that the proposed project will comply with applicable local regulations and World Bank policies and guidelines. These plans are described in a Corrective Action Plan (CAP) developed in collaboration with IFC. GIRSA has established an environmental health and safety (EH&S) group, designated CASH (Control Ambiental, Seguridad e Higiene) which is doing an outstanding job in identifying problems, establishing corrective and proactive action programs, training personnel, and monitoring performances. As part of CASH, GIRSA performs risk analyses during and after commissioning of new projects and is committed to ensure that any new project improves the already good EH&S conditions of the operations. CASH operates both at the corporate level with an specialized group of professionals and at the plant level with a responsible environmental person who reports to the plant manager.The is May 21, 1999 from the InfoShop.Host country location of environmental documentsGIRSA, S.A. de C.V.Paseo de los Tamarindos 400 B, Piso 31Bosques de las LomasCódigo Postal 05120Mexico, D. F.Date SPI sent to InfoShop May 21, 1999“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).