Milkaut

completed

Summary Of Project Information (SPI)Project NameArgentina-MilkautRegionLatin AmericaSectorProject No007437Projected Board DateSeptember 17, 1996Company NameMilkaut S.A.Technical Partner and/or Major Shareholders Milkaut is 100% owned (directly and indirectly) by Association Union Tamberos, a dairy cooperative with 1,335 members.Project Cost Including proposed IFC investment Project Cost US$45 million. IFC investment includes an A loan (for IFC’s own account) of US$ 10 million; a B loan (for account of participants) of US$ 5 million; and a C Loan of US$ 10 million.Location of project and Description of site The production facilities to be expanded and modernized are located in Franck and Colonia Nueva, province of Santa Fe.Description of Company and Purpose of Project Milkaut S.A., the third largest dairy company in Argentina, is undertaking an US$ 45 million investment program to rationalize and expand its processing facilities to meet growing demand as well as to absorb the increased production of cooperatives. Milkaut is one of Argentina’s leading dairy companies processing on average 1.1 million liters of milk per day in 7 plants. The proposed project is aimed at building and consolidating the Company’s competitive position in face of new investments by existing companies as well as by the entry of multinationals. The proposed project includes: expansion of UHT and milk powder plants, expansion of cheese processing capacity, expansion of product range, rationalization and improvements in various plants and distribution centers. Environmental Category and Issues This is a Category B project according to IFC’s environmental review procedures. Main environmental issues are: air emissions, liquid effluents, solid waste disposal and CFC producing materials. The Investment Program provides for additional investments to ensure that all plants are in compliance with IBRD’s environmental guidelines. The Company maintains a high standard of employee safety and health and provides protective clothing and headgear for all employees in the production area.The is available from the Public Information Center.Date SPI sent to PIC August 16, 1996For 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).