T6 Industrial S.A.

completed

Summary Of Project Information (SPI)Project NameArgentina-T6 Industrial S.A.     RegionLatin America and the CaribbeanSectorProject No008278Projected Board DateJune 15, 1997Company NameT6 Industrial S.A.Technical Partner and/or Major Shareholders T6 Industrial is owned by three Argentine oilseed processing companies: Aceitera General Deheza, Buyatti and Guipeba-Ceval.Project Cost Including proposed IFC investment The estimated project cost is US$61.4 million, including civil works, equipment, contingencies, value added tax, working capital and interest during construction. IFC’s proposed investment in T6 Industrial would comprise US$15 million for IFC’s account, including a US$5 million income participating loan, and a syndicated loan of up to US$30 million for the account of participating banks.Location of project and Description of site T6 Industrial is located in Puerto General San Martin, Province of Santa Fe, approximately 450 km north of the mouth of the Parana river. The plant will be located adjacent to Terminal 6 S.A., a river port facility also owned by the same shareholders as T6 Industrial.Description of Company and Purpose of Project Oilseed crushing capacity of T6 Industrial’s shareholders currently represents approximately 28% of Argentina’s total. In view of increasing world demand for vegetable protein and oils, and the country’s oilseed production cost competitiveness and expansion potential, the shareholders decided to join forces to undertake the project. The plant will operate as a cost center where the shareholders can use its soybean crushing capacity proportionally to their equity stake in the Company. By-products resulting from the plant’s soybean crushing activities will be shipped for exports through Terminal 6. Terminal 6 is also undergoing an expansion program to accommodate additional volumes from the T6 Industrial. Given the current efficiency of the port terminal, scale economies at the crushing plant, and the proximity and integration of operations between the plant and the port, the Terminal 6-T6 Industrial projects would contribute to the creation of a highly competitive soybean by-product exporting complex.Environmental Category and Issues This is a category B project according to IFC’s environmental review procedure. Environmental, health and safety issues include air emissions and dust control, effluent treatment and disposal, solid waste management, chemicals handling and disposal, fire prevention, employee exposure to noise and dust, and general employee health and safety. Environmental reports presented by the Company demonstrate that the project will comply with applicable governmetnal and World Bank requirements.The is from the Public Information Center.Date SPI sent to PIC      May 14, 1997For 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).