Mallory S.A.

completed

Summary Of Project Information (SPI)Project NameBrazil-MalloryRegionLatin America and CaribbeanSectorProject No004988Projected Board DateNovember 30, 1995Company NameMallory Limitada (“Mallory”) Technical Partner and/or Major Shareholders Mallory’s major shareholders are: entities controlled by Donaldson Lufkin and Jenrette Merchant Banking Partners, L.P.(“DLJMB” - 45%), Brazil Equity Investments (“BEI” - 25%), Argentina Equity Investments (“AEI” - 16%), and Mr. Marcel Vanden Bussche (14%). DLJMB is the merchant banking arm of Donaldson Lufkin and Jenrette, a leading US investment bank. BEI and AEI are both private equity investment funds. BEI is co-managed by Banco Garantia, a leading Brazilian investment bank and by BEA Associates, a US asset management company. AEI is managed by BEA Associates.Project Cost Including proposed IFC investment US$32.3 million; Proposed IFC investment of about US$10 million.Location of project and Description of site Mallory´s existing plant is in Itapevi, just outside São Paulo. The new plant is to be located in Maranguape, 25 km south of Fortaleza, in Brazil´s northeastern state of Ceará.Description of Company and Purpose of Project Mallory is one of Brazil’s leading producers of small electric home appliances and industrial components. As part of an overall modernization process, Mallory is implementing a US$32 million investment program. Mallory assembles and manufactures two main lines of products: (i) small home appliances such as table fans, irons, vacuum cleaners and blenders; and (ii) industrial components such as small electric motors and pumps used in the manufacture of dishwashers, washing machines and dryers. The project is aimed at broadening Mallory´s product range through the expansion and improvement of its production facilities at its existing plant in Itapevi and establishing a new plant, to be located in Maranguape, state of Ceará. The new plant will assemble fans and (eventually) motors.Environmental Category and Issues This is a category B project according to IFC´s environmental review procedure. Environmental and occupational health and safety issues associated with this project include air emissions, liquid effluents, solid wastes, and general employee training, health and safety. Plant operations do not generate air emissions or industrial liquid effluents. Mallory has invested in an effluent treatment unit to treat its domestic sewage. Currently the plant complies with local liquid effluent regulations and will be optimized to ensure continued compliance with World Bank guidelines. Solid and organic waste are reused or processed for recycling. Employee occupational health and safety issues are addressed through a comprehensive program that includes operational and safety training and health monitoring. The Company has trained selected employees in fire control and community coordination. IFC will ensure ongoing compliance with World Bank guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by Mallory, and by conducting periodic supervision.The is from the Public Information Center.Host country location of environmental documentsEstrada Velha Realde ITÚ, 111, 006651-970, Itapevi, SP, BRAZILDate SPI sent to PIC October 20, 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).