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| Fuba PC |
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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 | 26716 |
| Company name | Fuba Printed Circuits Tunisie S.A. |
| Country | Tunisia |
| Sector | Industrial & Consumer Products |
| Environmental category | B |
| Department | Global Manufacturing & Services |
| Status | Active |
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| Date SPI disclosed | May 13, 2008 |
| Projected board date | June 13, 2008 |
| Previous Events | Invested: December 8, 2008
Signed: June 26, 2008
Approved: June 25, 2008 |
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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 |
The proposed IFC investment in Fuba Printed Circuits Tunisie S.A. (the company or Fuba), will contribute to the growth and development of an export-oriented Tunisian high-technology industrial company, which is fully aligned with the World Bank Group-supported objectives of improving competitiveness and creating employment opportunities for university graduates. Fuba is active in the electronics sector and aims at increasing the technological content of the products it manufactures. Fuba produces Printed Circuit Board (PCB). The PCB is the principal subassembly in virtually all electronic products, serving as an interconnection and circuit layout platform for component and modules.
The proposed IFC equity investment of up to 19 percent of the Fuba’s capital will support the company’s growth. |
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| Project sponsor and major shareholders of project company |
| OneTech Group, represented by Moncef Sellami (the sponsor or the Group) is a leading Tunisian group of companies with a focus on the electronics and the automotive sectors. The Group includes 15 companies which are active in the electronics, wiring, IT and technical plastics (automotive) sectors. The Group is a family-owned business, controlled by the Sellami family and led by Hédi and Slim Sellami, sons of founder Moncef Sellami. The Group has aggregate sales of around EUR234 million and about 2,000 employees and is one of Tunisia largest private sector group. |
| Total project cost and amount and nature of IFC's investment |
| Up to 19 percent of the company’s capital to support Fuba’s corporate structuring that will facilitate the implementation of its growth plans and position the company for an eventual IPO in the medium-term. |
| Location of project and description of site |
| Fuba was implemented in 1991 in an industrial zone of 17 ha in Bizerte near Tunis. The surface of the factory is 14,000 m². |
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| Anticipated development impact of the project |
The project will support a medium size company set up a platform to undertake future expansion, thereby improving its competitiveness in the export market and benefiting the local economy by protecting and increasing jobs, tax revenues and exports earnings.
In addition, the Group has aspirations to expand internationally by developing manufacturing capabilities in other low cost countries (South-South investments). |
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| IFC's expected development contribution |
Through this project, IFC will support a leading Tunisian group in its strategy to rationalize, modernize and expand its operations. IFC will offer strategic advice and assist in an eventual public listing. IFC’s equity participation is considered crucial to support Fuba in its expansion by providing the necessary funding and global industry expertise. IFC will support the company in improving its environmental and social practices while ensuring compliance with IFC performance standard.
Private sector development:
Fuba aims to work with IFC to improve financial and operational reporting systems, and to adopt international best practices for environment as well as transparency and corporate governance. Transformation of a family-owned group to a more transparent and professionally managed company is expected to ensure long-term sustainability, encourage best practices across the industry and contribute to private sector development in Tunisia.
Support to South-South investment:
IFC’s experience in countries of interest (e.g. India), its financial capabilities (debt and equity) and its focus on South-South transactions are uniquely suited to the Group’s needs. |
| Environmental and social issues - Category B |
| The key social and environmental issues in this industry are social and environmental management, management of labor relations and workplace conditions, management of emissions to air and water, and solid and hazardous material management. Potential adverse effects arising from these issues are limited in scope, largely reversible and may readily be mitigated through the use of available control technologies. This is therefore an environmental Category B project. |
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| For inquiries about the project, contact: |
Ms. Sabeh Boussarsar
Chief Financial Officer
Fuba Printed Circuits Tunisie
El Azib 7026 Km 9 Bizerte
Phone: (+216) 72 451 144
Fax: (+216) 72 451 333
Email: s.boussarsar@fuba.com.tn
Web Site: www.fubatunisie.com |
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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 |
Environmental documentation will be made available at the following location:
Entrance of the factory at the following address -
El Azib 7026 Km 9 Bizerte, Tunisia,
from May 14 to June 14 2008. |
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