P.T. Megaplast Jayacitra

completed

Summary Of Project Information (SPI)Project NameIndonesia-P.T. Megaplast Jayacitra     RegionAsiaSectorProject No008377Projected Board DateNovember 14, 1997Company NameP.T. Megaplast JayacitraTechnical Partner and/or Major Shareholders PT. Megaplast Jayacitra (Megaplast) is a 50/50 joint venture company between Memory Japan Corporation, Singapore (MJC)and Jaya Laksana Group, Indonesia (JLG). MJC is a plastic injection molding company specialized in manufcaturing floppy diskettes and video cassettes. JLG has has been active in manufacturing cane furniture and raw material used for furniture for more than two decades. The two groups established a joint venture company in Indonesia in 1995 to produce floppy diskettes, and the success of that venture led to the formation of Megaplast.Project Cost Including proposed IFC investment Total project cost is estimated at US$56 million. IFC’s proposed investment consists of an A Loan of US$11.5 million, a B Loan of US$19.5 million and a possible equity investment of up to US$2.5 million.Location of project and Description of site The project will be located in an industrial estate in Cikarang, approximately 25 miles from Jakarta. Description of Company and Purpose of Project P.T. Megaplast Jayacitra was established in 1996. The project is to set up a plastic injection molding facility to manufacture 120 million VHS video cassette shells per year. The proposed project will: (i) enable Megaplast to set up a world class manufacturing facility employing the latest plastic injection molding technology to produce high quality precision products; (ii) help diversify MJC’s manufacturing capacity regionally and enable it to fulfil large order backlogs; (iii) develop and utilize local labor force skills to make video cassette shells more produtively, and (iv) take advantage of a growing local market, where video penetration rates are at a low level of 15% compared with 80% in the U.S. Environmental Category and Issues This is a category B project according to IFC’s environmental review procedure. The key environmental issues include solid and liquid waste management and fire protection and emergency response. Water used for non-contact cooling water is recycled within a “closed-loop” system; small amounts of cleaning washwaters and sanitary wastewaters are discharged to the industrial estate’s wastewater management system. Solid wastes are either recycled back to the production process or sold to recyclers. Fire protection services are provided by the industrial estate; adequate detection and alarm systems, as well as emergency egress, are also designed into the facilities. IFC will monitor the sponsor’s ongoing compliance with World Bank policies, and environmental, health and safety guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC.The is from the Public Information Center.Date SPI sent to PIC      October 1, 1997For 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).