P.T. Sayap Mas Utama (Multicompany with 8414)

completed

Summary Of Project Information (SPI)Project NameIndonesia: Wings Soap & DetergentsRegionAsiaSectorProject No007508Projected Board DateMay 8, 1997Company NamePT Sayap Mas Utama & PT Wings SuryaTechnical Partner and/or Major Shareholders PT Sayap Mas Utama (“SMU”)and PT Wings Surya (“WS”)are part of the Wings Group, the leading local soap and detergent manufacturer in Indonesia. Wings is diversified, with main activities in soap and detergents, printing, plastic packaging, building material manufacturing, industrial chemical processing, palm oil plantations, real estate and financial services. Mr. Johannes Katuari, Mr. Harjo Sutanto and their extended families collectively own 100% of SMU and WS.Project Cost Including proposed IFC investment Total project cost is estimated at US$120.8 million; IFC’ proposed investment consists of an A loan of US$25 million and a B loan of US$55 million.    Location of project and Description of site The Project will be located at the two companies’ present sites in Surabaya and Jakarta.Description of Company and Purpose of Project The Wings Group (“Wings”) was established in Surabaya (East Java) in 1948, as a small enterprise to manufacture basic bar laundry soap. Since then, Wings has grown to become one of the largest soap and detergent manufacturers in Indonesia. It currently produces cream, bar and powder detergents, floor cleaners and various types of bar and liquid soap. Wings’ distribution system extends throughout Indonesia, including many of the outer islands, capturing an estimated 45% of the domestic market. The proposed project consists of several components for both the Jakarta and Surabaya facilities, designed to (i) increase the compounding/mixing capacity of powder, paste and liquid detergents, (ii) increase capacity and product range of soap manufacturing, (iii) upgrade and expand existing packaging lines for soaps and detergents, (iv) establish in-house printing capability for labeling and packaging, (v) expand the distribution network by establishing new warehousing and distribution centers, (vi) improve the R&D capabilities and (vii) upgrade the environmental, health and safety conditions to meet World Bank guidelines.  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: air emissions, liquid effluents, solid waste, fire prevention and emergency response, employee exposure to noise, chemicals and dust, and environmental, health and safety performance of existing operations. The Project is being designed to fully comply with all the relevant Indonesian and World Bank guidelines.     The is available from the Public Information Center. Date SPI sent to PIC March 26, 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).