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Summary of Project Information (SPI) |
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| Project number | 8396 |
| Project name | Bilstein Compa |
| Country | Romania |
| Sector | Industrial & Consumer Products |
| Department | Global Manufacturing & Services |
| Company name | Krupp Bilstein Compa S.A. |
| Environmental category | B |
| Date disclosed | October 10, 1997 |
| Status | Completed |
| Previous Events | Invested: July 20, 1998
Signed: June 1, 1998
Approved: February 26, 1998 |
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REVISED Summary Of Project Information (SPI)
| Project Name | Romania-Bilstein Compa |
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| Region | Europe |
| Sector | |
Project No008396
Projected Board DateNovember 20, 1997
Company NameKrupp Bilstein Compa S.A.
Technical Partner and/or Major Shareholders
The major shareholder, and technical partner, with a 65% interest, is Krupp Bilstein GmbH of Germany, a manufacturer of premium automotive shock absorbers and car jacks. Krupp Bilstein GmbH is a member of the Krupp Group of Companies.
The other shareholder, with a 35% shareholding, is Compa S.A. of Sibiu, Romania, which manufactures a range of automotive components for supply to the Romanian automotive industry and the after market. Products include shock absorbers, gas springs, leaf and coil springs, brake equipment and steering boxes.
Project Cost Including proposed IFC investment
The total project cost is estimated at US$19.5 million equivalent, of which it is proposed that IFC provides US$9 million equivalent, including a "B" loan participation of US$4.5 million equivalent, and an IFC A loan of US$4.5 million equivalent.
Location of project and Description of site
The Bilstein Compa joint venture is located on approximately 18,000 square metres of land within the main 280,000 square metre Compa S.A factory complex in Sibiu, Romania.
Description of Company and Purpose of Project
A joint stock company, Bilstein Compa was established in June 1996 by Compa S.A. contributing the assets of its shock absorber plant and its domestic shock absorber market, and Bilstein contributing cash, technology and European market access. The project will modernize and expand the old Compa shock absorber plant to manufacuture a new range of shock absorbers for the Romanian market and the wider European original equipment and after markets. Customers will include Dacia in Romania, and Mercedes and MCC in Europe, for the new Mercedes A Class and Smart cars. IFC will provide term finance which, despite an improving macro-economic environment, remains difficult to obtain without excessive collateral, including a parent company guaranttee. IFC's participation is also expected to accelerate business growth which will increase employment opportunities and export earnings. The project has a strong developmental impact. It delivers new technology, opens new export markets and provides new employment opportunities.
Environmental Category and Issues
This is an environmental review category B project. Environmental, occupational health, and safety issues include air emissions, liquid effluents, solid and hazardous waste disposal, contaminated land from present or past operations, fire prevention and emergency response, and worker exposure to hazardous chemicals, fumes, noise and dust.
The sponsor has presented plans to address these issues and demonstrate the proposed project will comply with applicable governmental and World Bank requirements. Since taking possession of the plant in 1996, Bilstein Compa has implemented or is in the process of implementing significant environmental, health and safety improvements. Bilstein Compa has recently shut down the old chroming line and commissioned a new chroming line, which includes chromium recovery. It has also installed a modern electrostatic paint line. In addition, the joint venture has commissioned an environmental audit of the site to investigate potential soil and ground water contamination from present and past operations. The Corrective Action Plan will include clean up of surfical contaminated soil and decommisioning and removal of the old chroming station.
The is from the Public Information Center.
Date SPI sent to PIC:
Revised: | October 9, 1997
October 10, 1997 |
“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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