SEF G+M Industrial Ltd.

completed

Summary Of Project Information (SPI)Project NameMongolia-G & M Leather Garments     RegionAsiaSectorProject No007940Projected Board DateJanuary 14, 1997Company NameG & M Industrial Co. Ltd.Technical Partner and/or Major Shareholders Enkhjin Co. Ltd. (Mongolia) Testorf Trading Company (Germany)Project Cost Including proposed IFC investment Proposed project cost is US$3.5 million. IFC proposed investment is US$1.75 million, consisting of US$1.45 million long-term loan and US$0.3 million of equity.Location of project and Description of site The Company and the proposed project are located in Bayangol industrial district of Ulaanbaatar. The site occupies 1.7 hectares of land and is connected to the city’s electricity and utility grids. Description of Company and Purpose of Project The project will diversify the Company’s existing tanning activity to include leather garmenting. The leather garments will be upper market and higher margined products, sold initially to the local and regional market and, subsequently, to European markets. IFC and its technical consultants have advised the Company on redesigning the project into a two phased approach more in line with conservative financial and marketing parameters. IFC has also introduced the Company to European specialists who can provide technical, training, and marketing assistance. The project would be the first large private leather garmenting operation in Mongolia and an example for future companies to follow, thereby adding value to the country’s important livestock industry. Environmental Category and Issues This is a Category B project. Environmental, health, and safety issues associated with this project include proper treatment and disposal of liquid and solid wastes and gaseous emissions, general worker health and safety, and fire protection.The is from the Public Information Center.Date SPI sent to PIC December 12, 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).