Weihai Weidongri Comprehensive Foodstuff Co., Ltd.

completed

Summary Of Project Information (SPI)Project NameChina-Weidongri Comprehensive Foodstuff Co. Ltd.RegionAsiaSectorProject No007065Projected Board DateSeptember 12, 1995Company NameWeidongri Comprehensive Foodstuff Co. Ltd.Technical Partner and/or Major Shareholders The Company was established in 1994 by Katokichi Co., Ltd. (25%), Hokushu Shokuhin Co., Ltd. (25%), Dong Won Fisheries Co., Ltd. (25%) and Weihai Economic and Technical Development Zone (25%). Katokichi is one of the leading producers of frozen food in Japan. Frozen food accounts for 70% of its total net sales of about US$1.4 billion. Products sold by Katokichi include frozen food for frying, frozen consumer-ready foods as well as food ingredients. Dong Won is a privately-held Korean fishing company with annual sales of about US$92 million using about 30 vessels. It sells most of its products to Japanese companies and traders, of which Hokushu and Katokichi are among its principal clients. Hokushu is a privately-held food company with annual sales of US$245 million. Fish products comprises almost 85% of total net sales, while the remaining 15% consists of Japanese delicatessen products. Weihai Economic and Technical Development Zone (WETDZ) was established in October 1992 by the State Council as a national development zone. The Administrative Committee of WETDZ is authorized to approve new investments in the region, including participation in Sino-foreign joint ventures.Project Cost Including proposed IFC investment US$20 million. Proposed IFC investment: A loan of Japanese Yen 537.6 million (US$5.5 million equivalent for IFC’s own account); B loan of Japanese Yen 635.4 million (US$6.5 million for participants’ account) and an equity investment of up to US$ 1 million.Location of project and Description of site City of Weihai, Shandong Province, China. The plant will be located on a 6.7 ha site close to the center of the Weihai Economic and Technical Development Zone.Description of Company and Purpose of Project The project consists of building a food processing plant to clean, cook, prepare, pack and store processed fish, chicken, pork and vegetable products for export with expected annual export revenues of US$40 million at full production. The project will capitalize on China’s cost competitiveness in this industry.Environmental Category and Issues This is a Category B project according to IFC’s environmental review procedure. Environmental issues associated with this project include solid waste disposal and liquid effluents. The liquid effluents will be transferred to the WETDZ Municipal sewage system and will be treated at the WETDZ waste water treatment plant while solid wastes will be disposed of at the municipal landfill. The plant is hygienically designed and employees will be provided with protective clothing.The is from the Public Information Center.Date SPI sent to PIC August 1, 1995For 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).