IFC $50 Million Loan to Shanshui Group Supports Environmental Upgrades
In Beijing
Wenqin Zhu
Phone: +(8610) 6505 8686 x8060
Email: wzhu@ifc.org
In Washington
Hannfried von Hindenburg
Phone: +1(202) 458 5613
Email: hvonhindenburg@ifc.org
In Hong Kong
Andrew Mak
Phone: +(852) 2509 8110
Email: amak@ifc.org
Beijing, May 16, 2006 — The International
Finance Corporation, the private sector arm of the World Bank Group, today
signed a $50 million loan agreement with Shanshui Group, the largest cement
producer in Shandong Province. IFC’s investment will assist SSG in debt
restructuring and provide for the installation of energy efficient technology.
The loans to two separate subsidiaries of
the company will form part of SSG’s debt restructuring and capital investment
program over the next two years. The program will deliver environmental
efficiency via the installation of five energy efficient waste heat recovery
systems, and reduced levels of pollution as a result of improved modern
technology.
“IFC aims to support local companies that
are strong players in their respective regions,” said IFC Executive Vice
President Lars Thunell. “Shanshui Group’s investment in environmentally
friendly technology should serve as a model for other companies in key
industrial sectors across China as they strive to achieve international
standards”, said Thunell.
IFC’s loan follows a $7.7 million equity
investment it made in SSG in 2005. SSG is one of China’s leading cement
companies and is firmly committed to energy efficiency and environmental
friendliness. The company meets the World Bank Group limits for particulate
emissions at all plants, and SSG has committed to seeking ISO (International
Organization for Standardization) 14001 certification for all existing
facilities within the next three years.
“As one of the leaders in China’s cement
sector, SSG strives to be stronger and more competitive, and we welcome
IFC’s financial package and technical advice as we raise the level of
our operations,” said Mr. Zhang Caikui, Chairman and General Manager of
Shanshui Group. “We hope this will be a long and productive partnership.”
About SSG
SSG is the leading cement producer in Shandong
Province, and one of the largest cement producers in China. SSG has
its headquarters in Jinan, the capital of Shandong, and has an annual capacity
of more than 20 million tons of cement per year. It employs modern,
energy-efficient technology in its many clinker and cement facilities around
Shandong. In recent years, SSG has successfully implemented a rapid
expansion strategy, as well as attracted financing from international investors,
making it well-positioned to take advantage of the expected up-swing in
the Chinese cement sector in the coming years.
About IFC
IFC promotes sustainable private sector investment
in developing and transition countries, helping to reduce poverty and improve
people’s lives. IFC finances private sector investments, mobilizes capital
in the international financial markets, helps clients improve social and
environmental sustainability, and provides technical assistance and advice
to governments and businesses. Its 178 member countries provide its share
capital and collectively determine its policies. From its founding in 1956
through FY05, IFC has committed more than $49 billion of its own funds
and arranged $24 billion in syndications for 3,319 companies in 140 developing
countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion
for its own account and $5.3 billion held for participants in loan syndications.
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