Modern Aluminum Industries Co.

completed

Summary Of Project Information (SPI)Project NameJordan-Modern Aluminum Industries Co. (MODAL)     RegionMiddle EastSectorProject No007209Projected Board DateFebruary 27, 1995Company NameModern Aluminum Industries Co. (MODAL)Technical Partner and/or Major Shareholders The Nuqul Group (80%), Jordan Steel (20%)Project Cost Including proposed IFC investment Project Cost of US$17.7 million (including an IFC loan of about US$6 million).Location of project and Description of site Located in the Eastern Arinbeh Village, 45 kilometers south of Amman, MODAL will be a modern 19,000 square meters plant occupying part of a site of 53,000 square meters.Description of Company and Purpose of Project The project consists of setting up MODAL which will own and operate a 6,000 ton/year aluminum extrusion facility. MODAL will produce anodized, powder painted, or electrocolored aluminum profiles of international quality and at competitive prices for the construction industry and light-manufacturing applications. Approximately 75% of MODAL’s production will be sold on the domestic market and the rest exported to neighboring countries. Economic benefits accruing to Jordan include foreign exchange generation and savings, the creation of 129 jobs, the introduction of international standards for environmental protection and increased competition in the domestic aluminum industry. IFC’s main role in this project is to provide a term loan in a country where there is a shortage of long-term funding. IFC’s participation in financing the project will help bridge a significant funding gap, and help the Company mobilize local loans. Also, IFC provided valuable technical advice to the project sponsor during appraisal. Finally, IFC’s participation will ensure that the project fully meets the World Bank environmental guidelines. Local regulations regarding environmental aspects are non-existent in Jordan. This project will serve as a model plant in conforming to international environmental standards by applying chrome free production methodsEnvironmental Category and Issues This is an environmental review category B project; principal issues are air emissions, liquid effluents, solid wastes, land use, fire prevention, and employee exposure to heat, noise and chemical substances. The sponsor has presented plans to address these issues and to comply with applicable governmental and World Bank requirements; key actions include measures for air pollution control and wastewater treatment, use of chrome-free coating systems, employee training, and provisions for fire prevention and protection of employees from workplace hazards. The is February 8, 1995 from the Public Information Center.Date SPI sent to PIC      February 1, 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).