PT Alumindo Light Metal Industry

completed

Summary Of Project Information (SPI)Project NameIndonesia - P.T. Alumindo Light Metal Industry     RegionAsiaSectorProject No007789Projected Board DateDecember 23, 1996Company NameP.T. Alumindo Light Metal IndustryTechnical Partner and/or Major Shareholders P.T. Alumindo Light Metal Industry is a member of Maspion, an important business group in East Java and the largest manufacturer of kitchenware in Indonesia. Maspion is diversified, with main activities in aluminum, stainless steel, steel, plastic, electronics and chemicals. The Maspion Group is 100% owned by the Alim and Gunardi families of Surabaya. Alumindo has signed a technical assistance agreement with Hoogovens from Netherlands, which is helping the commissioning of a new hot rolling line and the workers’ training. Project Cost Including proposed IFC investment Total project cost is estimated at US$93.0 million; IFC’s proposed investment consists of an A loan of US$10.0 million and a B loan of US$25.0 million.Location of project and Description of site The Project will be located adjacent to Alumindo’s present production site in Sidoarjo, near Surabaya, the capital of East Java and the second largest city in Indonesia.Description of Company and Purpose of Project Alumindo started its operations in 1978, and now is the largest manufacturer of rolled aluminum products in Indonesia with about 52% share of sheet production and 76% share of foil production. The proposed project is to expand Alumindo’s aluminum rolling capacity from the current 42,000 tons per year to 84,000 tons per year and to upgrade its technical ability by installing new hot roll mill, cold roll mill and other auxiliary equipment. The proposed expansion and modernization project will allow Alumindo to (i) meet the growing local and regional demand, (ii) lower its costs, increase productivity and improve product quality, (iii) upgrade workers skills, and (iv) improve Alumindo’s overall competitiveness. Environmental Category and Issues This is a category “B” project under IFC’s environmental review procedure. The Project is being designed to fully comply with all the relevant Indonesian and World Bank guidelines. The is November 8, 1996 from the Public Information Center.Host country location of environmental documentsIndonesiaDate SPI sent to PIC November 4, 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).