Pinar Entegre et ve Yem Sanayii A.S. III

completed

Summary Of Project Information (SPI)Project NameTurkey-Pinar Et II     RegionEuropeSectorProject No008364Projected Board DateAugust 18, 1997Company NamePinar Entegre Et ve Yem Sanayii A.S.Technical Partner and/or Major Shareholders The Sponsor is the Yasar Group, one of Turkey’s largest conglomerates, with over 40 different companies operating in four major sectors: (i) paints and chemicals; (ii) food and agribusiness; (iii) trade and distribution; and (iv) financial services. The Pinar Food Group which consists of 8 different companies is the market leader in food production with annual revenues of US$650 million. Pinar Et is a public company and is listed on the Istanbul stock exchange and is majority owned and controlled by the Yasar Group.      Project Cost Including proposed IFC investment The project cost is estimated at US$23.2 million and the proposed IFC investment includes a loan of US$10 million.Location of project and Description of site The project will be located in the outskirts of Izmir. The turkey processing plant will be located next to the Company’s existing beef processing facility but will be physically separate to avoid cross-contamination. The hatchery will be located at a distance of 9 kms from the processing plant while the parent stock farms will be situated in a remote location (for good bio-security and reduced risk of disease) at a distance of 54 kms from the plant.      Description of Company and Purpose of Project Pinar Et is one of Turkey’s leading meat processors and owns and operates a feed mill, slaughter-house (for cattle and sheep) and a meat processing unit. Pinar Et is a pioneer in the meat industry in Turkey and is a market leader in the Aegean region with a wide range of beef-based, premium, value-added fresh, chilled, processed and frozen products. The proposed investment will allow the Company to diversify into poultry and expand its value-added processed product range in order to take advantage of the growing demand for white meat in the domestic market. A sub-component of the project is the construction of an organic fertilizer plant to process animal waste generated from the cattle paddocks and poultry livestock outgrowers. The project will introduce greater variety and higher quality of meat products to the Turkish consumers. Pinar Et proposes to use contract farmers in its turkey rearing operations which will provide an additional source of income to rural farmers. The construction of the organic fertilizer plant will help conserve the environment as it will process cattle manure and poultry litter and convert them into natural organic fertilizer pellets. Through this project IFC will assist in introducing a new product in the meat industry to compete with red meat. IFC would be providing long-term financing at reasonable rates that is currently not available to the Company given the high costs of local financing.     Environmental Category and Issues This is a Category B project according to IFC’s environmental review procedure. Environmental, occupational health and safety issues associated with this project include : site selection and location; air and water emissions; solid waste handling and disposal; fire protection and emergency response; and general worker health and safety. This project is properly sited in a rural area. Air emissions and wastewater will be treated to minimize emissions and meet World Bank guidelines. Animal waste (manure) will be processed in anew organic fertilizer plant to produce a valuable by-product for sale. The facilities are being designed to meet international standards for hygiene and occupational health and safety.The is from the Public Information Center.Date SPI sent to PIC      July 18, 1997For 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).