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Summary of Project Information (SPI) |
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| Project number | 8585 |
| Project name | ZAO Rautaruukki-Belcolor |
| Country | Belarus |
| Sector | Industrial & Consumer Products |
| Department | Global Manufacturing & Services |
| Company name | ZAO Rautaruukki Belcolor |
| Environmental category | B |
| Date disclosed | January 9, 1998 |
| Status | Completed |
| Previous Events | Signed: April 29, 1998
Approved: February 10, 1998 |
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Summary Of Project Information (SPI)
| Project Name | Belarus-Belcolor |
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| Region | Europe II |
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Project No008585
Projected Board DateFebruary 10, 1998
Company NameZAO Rautaruukki Belcolor
Technical Partner and/or Major Shareholders
The main shareholders will be Rautaruukki Oy (the Sponsor), 51% and Molodechno Factory for Light Metallurgical Construction (MZLMK), 39%. The Sponsor is Scandinavia’s largest steel procurer, with 1996 revenues of about US$2.6 billion and a marketing network for steel products in the CIS and Baltic regions. MZLMK is a 100% state-owned Belarusian enterprise, specializing in cold forming steel structures from hot rolled and cold rolled strips which it purchases from suppliers in Russia and Ukraine.
Project Cost Including Proposed IFC Investment
The total project cost is US$22.25 million. IFC will make an equity investment of up to US$2.5 million for up to 10% of the company’s shares.
Location of Project and Description of Site
The facility wok be located on a site in Molodechno, Belarus, and will be contiguous with, but independent from, MZLMK’s other operations. Land and existing buildings will be leased to the project by MZLMK through a 49-year lease agreement.
Description of Company and Purpose of Project
(include IFC’s Role and Development Impact)
Belcolor will build and operate a new coated cold-rolled coil facility with design production capacity of 80,000 tons per year of coated steel. Coated steel is used in the building industry, and the project will be focused primarily on the wall panel and roofing segments of the market. About 75% of the Company’s products will be exported through the Sponsor’s marketing network to customers in the CIS and Baltic region. IFC’s role in the project will be to catalyze foreign direct investment by providing political comfort to the Finnish partner, and to serve as honest broker between the local and foreign partners.
Environmental Category and Issues
This is an environmental review category B project. Environmental, occupational health, and safety issues include: site location and conditions, air emissions, solid waste and sludge management, wastewater treatment, and employee safety in relation to handling of organic coating materials. There are no indications of contamination from the pre-development use of the site. Solvent fumes from the coating processes will be extracted and combusted. A solvent regeneration system will be used. Sludge from the coating process and waste solvents will be handled by a licensed waste treatment company. Wastewater treatment, including chromium recovery, will be an integral part of the plant design. Paint/solvents and necessary chemicals will be kept in separate safe storage areas equipped with fire-fighting equipment and under supervision of specially trained personnel.
The is from the Public Information Center.
| Date SPI sent to InfoShop | January 9, 1998 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384 |
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| Environmental documents for this project are available at http://www.ifc.org/projects and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html). |
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