Vicentin S.A.I.C.

completed

Summary Of Project Information (SPI)Project NameArgentina-Vicentin S.A.I.C.RegionLatin AmericaSectorProject No007439Projected Board DateJuly 30, 1996Company NameVicentin S.A.I.C.Technical Partner and/or Major Shareholders Vicentin is a family-owned company with shares being equally divided between four related family groups.Project Cost Including proposed IFC investment Project cost is estimated at US$60 million. IFC investment includes an A loan (for IFC’s own account) of US$ 15 million; a B loan (for account of participants) of US$ 10 million; and a C Loan of US$ 10 million.Location of project and Description of site The project will be located in Avallaneda and San Lorenzo in Santa Fe province. The site at San Lorenzo is located near the river Parana at a distance of approximately 30 kms from the port of Rosario. Avallaneda is located in the north of Santa Fe province in the vicinity of the main cotton growing areas in Argentina.Description of Company and Purpose of Project Vicentin S.A.I.C. is one of Argentina’s leading producers of cotton, soybean, sunflower and linseed oil and by-products with annual exports reaching approximately US$350 million in 1995. The objective of the project is to increase capacity and reduce costs through increased efficiency and scale effects in order to consolidate Vicentin’s position in the ginning business; regain market share in the soybean sector; and maintain or increase overall market share with the ultimate objective of increasing relative and total margins. The proposed project will allow Vicentin to consolidate its position in the cotton ginning industry and improve competitiveness and market share through expansion of the San Lorenzo plant and reduced operational costs. IFC, through its involvement in the project, will assist the Company to improve its production efficiency, competitiveness and maintain and consolidate its market share. The project is expected to have a significant development impact as it will generate direct income for over 4000 farmers especially in the provinces of Chaco and Formosa which are relatively underdeveloped and there are few alternatives to cotton cultivation.Environmental Category and Issues This is a Category B project according to IFC’s environmental review procedure. Issues include air emissions, liquid effluents, solid waste disposal, fire and explosion safety, employee exposure to dust and general employee health and safety. The Company has presented plans to address these issues and demonstrated that the proposed project will comply with applicable governmental and World Bank requirements.The is available from the Public Information Center.Date SPI sent to PIC June 25, 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).