Shinmoorim Paper Mfg. Co., Ltd.

completed

Summary Of Project Information (SPI)Project NameRepublic of Korea: Shinmoorim Paper Manufacturing Company, Ltd.     RegionAsiaSectorProject No009016Projected Board DateAugust 6, 1998Company NameShinmoorim Paper Manufacturing Company, Ltd. (Shinmoorim, the Company)Technical Partner and/or Major Shareholders Shinmoorim is controlled by the Dong Wook Lee family, which owns approximately 50% of the Company. The remainder of the Company is widely held by private and institutional investors.Project Cost Including proposed IFC investment Total estimated project cost is KW330,000, or approximately US$235 million.     Location of project and Description of site The main production facility is located in Chinju, Korea on a 78,000 square meter site, where Shinmoorim established its initial operations in 1978.     Description of Company and Purpose of Project Shinmoorim is Korea''s second largest coated paper producer. The Company is installing a third paper machine to expand its production from 210,000 to 395,000 metric tons p.a. Civil work for the expansion is nearly complete and equipment has been partially installed. However, as a result of Korea''s recent economic crisis, the Company is unable to secure long-term financing to complete the expansion. In addition, the Company is overleveraged and has significant cross guarantees. IFC proposes to help finance the expansion and to restructure Shinmoorim’s debt and guarantee commitments. IFC would make a substantial equity investment in the Company and seek to mobilize other foreign portfolio investors to make similar equity investments. IFC would also provide some long-term debt.     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; process and sanitary wastewater treatment; solid waste management; hazardous materials storage and handling; fire protection and emergency response; and general workplace health and safety. Air emissions (principally from a co-generator energy plant) and liquid effluents will be within World Bank Group guidelines; solid waste is recycled or used as fertilizer. Appropriate hazardous waste management and health and safety plans have been developed and the company complies with relevant Korean and World Bank Group guidelines. The site has both ISO 9002 and 14001 certification and senior management has developed an environmental policy statement, which includes provisions for disclosure of environmental information to the public. IFC will monitor ongoing compliance with World Bank Group environmental, health and safety policies and guidelines during the lifetime of the project. The is from the InfoShop.Host country location of environmental documentsShinmoorim Executive Office, Seoul, Korea, and Shinmoorim Administration Office, Chinju KoreaDate SPI sent to InfoShop July 6, 1998“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”For 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).