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| Ascentool |
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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 | 28811 |
| Company name | Ascentool Inc. |
| Country | China |
| Sector | Professional, Scientific and Technical Services |
| Environmental category | B |
| Department | Global Inform. & Comm. Tech. |
| Status | Pend FAP |
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| Date SPI disclosed | October 13, 2009 |
| Projected board date | November 23, 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 |
| Ascentool Incorporated (“Ascentool” or “the Company”) was founded in 2005 to design innovative equipments and technology solutions in the thin film deposition space of the solar energy value chain. The Company is now seeking to establish its headquarters and operations in China, where it will design and manufacture equipment for thin film deposition. Ascentool’s proprietary technologies deliver high material utilization and throughput, reducing production cost of solar panels, compared to existing solutions. These equipments and technologies will be custom designed for solar panel manufacturers in China and around the world. |
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| Project sponsor and major shareholders of project company |
The Project’s sponsors are its founders, who are currently the major shareholders of the Company. They form the executive team: Dr. George X. Guo serves as Ascentool’s Chief Technology Officer; Dr. Kai-An Wang serves as President; and Dr. Qing Zhu serves as Chief Operating Officer.
IFC will invest alongside China Environment Fund (CEF) III, an IFC investee fund. |
| Total project cost and amount and nature of IFC's investment |
| IFC is considering an equity investment into a $20 million expansion project. |
| Location of project and description of site |
| The project will be located in two existing zoned industrial parks in Shanghai and Anyang, China. The Shanghai location will serve primarily as the Company’s research and development base, with Anyang as a base for some manufacturing of the individual equipment designs and a proposed pilot line for panel manufacturing. With these locations in, the Company expects to be close to its target markets - Chinese solar panel manufacturers and related suppliers. |
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| Anticipated development impact of the project |
| As a renewable energy source that generates electricity without pollution, solar technology can reduce the reliance on fossil energy and decrease the emission of CO2. The proposed investment in Ascentool will facilitate innovation in the design of thin film deposition equipments that may lead to cost reduction in the production of solar panels. This would result in increased utilization of solar energy and meaningful reduction in CO2 emissions. |
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| IFC's expected development contribution |
Promote clean technology: IFC’s support will be critical to the growth of Ascentool’s business in China, where the growth of the solar PV industry can lead to significant reduction in the emission of CO2 and the mitigation of climate change. IFC’s participation will also provide demonstration that clean technology is an important and viable area of investment.
Access to financing in illiquid capital markets: IFC is able to provide critical early-stage equity financing for renewable energy companies such as Ascentool, which may be difficult to obtain elsewhere.
Institute good corporate governance: IFC will assist Ascentool to institute best-practice corporate governance, including help with recruitment of at least one independent Board member. |
| Environmental and social issues - Category B |
Ascentool’s design and manufacture of thin film deposition equipment and technologies will provide an ongoing positive impact on global climate change. Environmental and Social Impact Assessment according to host country regulatory requirements was done for the industrial parks where Ascentool’s facilities will be located. Key environmental, health and safety, human resources and social issues reviewed in this project include the company’s environmental and social management system; labor and working conditions; emissions to air, water and subsurface; solid and hazardous materials management; life, fire, occupational, and community health and safety; energy use and efficiency; and community engagement.
Ascentool will commit to comply with local regulatory requirements as well as consistency with IFC Performance Standards and applicable environmental, health and safety guidelines. This will be a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects, as a limited number of specific environmental and social impacts may result, which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. Specific information about how Ascentool will manage environmental and social risks, impacts and opportunities will be found in the Environmental and Social Review Summary for this project. |
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| For inquiries about the project, contact: |
Dr. Qing Zhu
Chief Operating Officer
Ascentool Incorporated
Room 405B Chaoshan Bldg
439 Huashan Rd.
Jingan District, Shanghai
+86 13641034655 |
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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 |
Dr. Qing Zhu
Chief Operating Officer
Ascentool Incorporated
Room 405B Chaoshan Bldg
439 Huashan Rd.
Jingan District, Shanghai
+86 13641034655 |
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