Mariwasa Manufacturing, Inc

completed

Summary Of Project Information (SPI)Project NamePhilippines - MariwasaRegionEast Asia and PacificSectorProject No009536Projected Board DateOctober 12, 1999Company NameMariwasa Manufacturing, Inc.Technical Partner and/or Major Shareholders Mariwasa was founded by the Co Seteng family which focuses on the ceramics business. It is now owned by the Co Seteng family and associates (51%), the Siam Cement Group of Thailand (46%) and other small shareholders (3%).Project Cost Including proposed IFC investment The total estimated project cost is US$26 million. The proposed IFC investment consists of an "A" Loan of US$12 million and a "C" Loan (subordinated loan) of US$3 million.Location of project and Description of site Mariwasa was founded in 1966 with the main plant in Pasig, Manila. It operates another four small wholly-owned subsidiaries in Manila which specialize in wall tiles, polished tiles, and custom-design tile orders. Mariwasa established a modern, wholly-owned subsidiary called Mariwasa Siam Ceramics (MSC) in a Batangas, Luzon industrial zone in 1997.Description of Company and Purpose of Project This project involves the financial and operational restructuring of the Mariwasa, requiring an estimated US$26 million in new long-term funds. The restructuring will involve (i) the injection of a significant amount of fresh equity by the sponsors alongside the proposed IFC investment; (ii) the rescheduling of the company''s existing debt; (iii) a major reduction of inventory levels by the company; and (iv) the phased completion of the company''s on-going expansion and the future debottlenecking of production facilities in line with market recovery.Environmental Category and Issues This is a category B project according to IFC''s environmental review procedure. Environmental and occupational health and safety issues that were reviewed during appraisal included: site selection and prior land use; air emissions; wastewater treatment; handling of solid wastes and hazardous materials (including glazes and pigments); fire prevention and emergency response; and general worker health and safety. The plant site is in an area with commercial, light industry and residential uses, and no site issues arise. Air emissions include exhaust from the kilns, fired with LPG, as well as from dryers and other process equipment. The plant is equipped with a comprehensive dust collection and filtration system to minimize fugitive dust emissions from crushing, milling, mixing and transfer operations, and spray dryers are equipped with wet scrubbers. Process water contains high levels of suspended solids (clay), and is treated on site and largely recycled to the process. Solid wastes include collected dust and clay sludge from water treatment, which are recycled. All emissions meet World Bank Group guidelines. The company provides a safe working environment with appropriate measures to reduce or eliminate worker exposure to dust, noise, and aerosols. Personal protective equipment is provided to employees along with training programs to promote occupational health and safety. Mufflers are installed on generators and rubber linings in ball mills to reduce noise. The plant is equipped with appropriate fire protection measures including an alarm system, extinguishers and hydrants. IFC has concluded that this proposed project will meet World Bank Group environmental and health and safety policies and guidelines and host country requirements.The is from the InfoShop.Host country location of environmental documentsMariwasa Manufacturing, Inc. Pasig City Metro ManilaDate SPI sent to InfoShop September 10, 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).