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| Aluar |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 28305 |
| Company name | ALUAR ALUMINIO ARGENTINO S.A.I.C. |
| Country | Argentina |
| Sector | Primary Metals |
| Environmental category | B |
| Department | Global Manufacturing & Services |
| Status | Active |
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| Date SPI disclosed | August 26, 2009 |
| Projected board date | September 28, 2009 |
| Previous Events | Invested: October 15, 2009
Signed: October 13, 2009
Approved: October 7, 2009 |
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| View Environmental & Social Review Summary (ESRS), click here |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
Founded in 1970, Aluar Aluminio Argentino S.A.I.C. (“Aluar” or the “Company”) is the only primary aluminum producer and the main semi-manufactured aluminum producer in Argentina. With an installed capacity of 410,000 tons per year (“tpy”) of primary aluminum, Aluar’s operations are mainly located in Puerto Madryn (Chubut Province), approximately 1,400 km south of Buenos Aires. Aluar also owns two plants with installed capacity of over 30,000 tpy located in the Buenos Aires province focused on the production of rolled and extruded aluminum products.
The Company is undertaking a corporate capital expenditure plan for the expansion of its primary aluminum production capacity by 45,000 tpy to 455,000 tpy by 2011 (the “Investment Program”). |
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| Project sponsor and major shareholders of project company |
| The Company is publicly listed in the Buenos Aires Stock Exchange. Aluar is majority-owned by the Madanes Quintanilla family and related third parties with shareholding stake of 76% of the Company’s total shares. Aluar’s remaining shareholders are: (i) National Social Security Administration (“Anses”) - 11%; and (ii) free-float - 13%. |
| Total project cost and amount and nature of IFC's investment |
| IFC is considering an investment in Aluar to finance the Company’s Investment Program. |
| Location of project and description of site |
| Aluar’s Investment Program consists of an expansion of its main industrial plant located in Puerto Madryn (Province of Chubut). Aluar’s nominal production capacity of primary aluminum shall be increased by 45,000 tpy to 455,000 tpy in 2011. |
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| Anticipated development impact of the project |
The Company’s Investment Program would:
(i) Continue to provide good employment opportunities, as Aluar is one of the largest employers in the region with over 2,200 staff in FY08. The project implementation will involve contracting a peak of about 2,000 people, after which the permanent net employment generation is about 80 direct jobs and an estimated 300 indirectly;
(ii) Generate additional exports to Argentina estimated to reach up to $130 million per annum, on top of Aluar’s exports of over $600 million in FY08; and
(iii) Foster tax revenues to the government. |
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| IFC's expected development contribution |
| IFC would support a globally competitive company to continue with its expansion program in Argentina. In addition, IFC would be supporting an enterprise that sets an example in terms of energy efficiency and environmental and social practices. The Company and the Investment Program have a systemic impact in the economic development of the southern region, providing employment opportunities, and business prospects to distributors, and SME suppliers in the country. Finally, this is an export enabling Investment Program supporting a company with sound track record and more than 30 years of operations in Argentina. |
| Environmental and social issues - Category B |
This is a Category B project, according to IFC’s procedure for environmental and social review of projects because adverse project impacts are few in number and readily mitigable, as described below.
Key environmental issues associated with the Puerto Madryn smelter are management of emissions to air of fluorides and perfluorocarbons and carbon dioxide arising from process and electricity generation, management of solid wastes, with special emphasis on spent pot linings; elimination of wastewater discharges to the sensitive Golfo Nuevo bay; and decontamination of PCB-containing transformers.
The Futaleufú hydroelectric plant, which is 60% owned by Aluar, has an environmental management program to deal with PCBs and other contaminants, and robust emergency preparedness and response measures.
Aluar sites have ISO 14001-certified environmental management systems, regularly audited by international companies, are compliant with all national environmental requirements. Aluar regularly monitors its environmental performance and reports its findings to government authorities and other stakeholders. |
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| For inquiries about the project, contact: |
Mr. Andrés Philipps – Financial Planning Manager
Phone: +54 11- 4725-8037
Fax: +54 11- 4725-8092 |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
| Local access of project documentation |
Aluar Aluminio Argentino S.A.I.C.
Address: C.C. 52 (U9120OIA)
Puerto Madryn – Chubut
Argentina
M.T de Alvear 590 - 3 floor
Buenos Aires, Buenos Aires C1058AAF
Argentina |
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