SIMPA CI

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Proposed investment is an A loan of up to EUR15 million to Société Industrielle Moderne Des Plastiques Africains (“Simpa”, or “the company”), Senegal’s leading plastics packaging company. Simpa manufactures a wide variety of plastic packaging products sold primarily to agribusiness companies and hygiene/cosmetic companies. Simpa is planning a regional expansion by establishing a greenfield plastic packaging subsidiary, Simpa Côte d’Ivoire, in Abidjan (the “Project”). Simpa is a supplier of mass consumption injected plastic products, and of flexible thin film plastic packaging solutions for consumer goods, notably food products. The company currently manufactures products from quality rejects (and also scrap collected from outside through resellers), and is procuring raw materials from international companies. The main raw materials are low density polyethylene (LDPE), polypropylene (PP), bi-oriented PP (BOPP), cast PP (CPP), polyethylene tetra phthalate (PET) and aluminum. The production processes include injection molding, extrusion of plastic film, thermoforming, printing and converting. Simpa has also a small bleach and soap production line. For the new plant, Simpa will procure raw materials from international companies and will also use quality rejects.Simpa’s existing plant is located in the Rufisque industrial zone, in the suburb of Dakar, Senegal and covers 41,200 m2 of land bought on a willing buyer willing seller basis. The land for the new plant covers 18,000 m2 in modified habitat of the industrial zone in Abidjan-Yopougon, Cote d’Ivoire. Construction commenced in early 2016 and will extend over a period of one year.