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| Description of company and purpose of project |
SIDER, a state-owned enterprise and Algeria’s sole integrated steel producer, has been privatized in October 2001. In this context, LNM Holdings N.V. has bought a 70% stake in Ispat Annaba (the company), the main steel producing plant and a 70% stake in Ispat Tebessa, its associated mines. LNM/Ispat group is contemplating a project in Ispat Annaba to:
rehabilitate and de-bottleneck the existing plant; and
upgrade the plant to meet international environmental norms.
The investment program is to be phased over a 10-year period, with about $123 million to be invested between 2003 and 2005.
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| Project sponsor and major shareholders of project company |
The project is sponsored by LNM Holdings NV which is part of the LNM Group (the Group).
In addition to LNM Holdings NV, the Group includes Ispat International N.V. , a company quoted on the New York Stock Exchange and the Amsterdam Stock Exchange. The Group is the world’s 2nd largest and most global steel producer, with annual sales of over $9 billion and a steel making capacity of 35 million tonnes spread over 12 countries.
LNM Holdings is the largest shareholder in Ispat Annaba, with a 70% stake in the company. The remaining 30% are held by SIDER, a state-owned enterprise.
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| Total project cost and proposed IFC investment |
The project cost is estimated at $123 million. The proposed IFC investment is a loan of up to $25 million for its own account.
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| Location of project and description of site |
The project is located in Annaba, in Eastern Algeria near the border with Tunisia. The project site has easy access to major roads and infrastructure, including port facilities in Annaba.
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| Project Development Impact and IFC's Role |
This project is expected to have a high development impact due to:
job creation and employment preservation for the existing 13,500 employees in Ispat Annaba and its ancillary facilities;
technology transfer through Ispat’s wide experience in steel processing and treatment facilities;
local employees’ exposure to global steel making practices through Ispat’s “Knowledge Integration Program”, a quality and cost improvement program designed to disseminate the Group’s best practices among all subsidiaries; and
a substantial reduction of the negative externalities caused by polluting effects of the existing plant.
IFC’s role in the project involves:
supporting the government’s ongoing privatization program by participating in a highly visible and successful privatization;
providing long-term financing to the project which is not available on the same terms in Algeria;
assisting the company in formulating its investment program; and
devising an Environmental Action Plan with the company to conform with international norms of pollution control.
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| Environmental and social issues - Category B |
This is a category B project according to IFC’s Procedure for Environmental and Social Review of Projects.
To view the environmental documents for this project, click here |
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| Location of environmental documents in locally affected community |
The Environmental Review Summary (ERS) will be translated in French and Arabic, and posted at the local government office as well as the company’s site:
Ispat Annaba spa,
Sidi Amar, El-Hadjar BP 2055
23000 Annaba, Algeria
Phone: 213 38 87 1669/1630
Fax: 213 38 87 1830
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| To contact the project company, please write to: |
Mr. B.N. Singh, Managing Director
Ispat Annaba spa,
Sidi Amar, El-Hadjar BP 2055
23000 Annaba, Algeria
Phone: 213 38 87 1669/1630
Fax: 213 38 87 1830
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