|
|
 |
 |
|
Summary of Project Information (SPI) |
|
| |
| Project number | 8908 |
| Project name | Joint Stock Company - Dauteks |
| Country | Latvia |
| Sector | Textiles, Apparel & Leather |
| Department | Global Manufacturing & Services |
| Company name | Joint Stock Company Tolaram Fibers |
| Environmental category | B |
| Date disclosed | April 23, 1998 |
| Status | Completed |
| Previous Events | Signed: October 21, 1998
Approved: May 29, 1998 |
|
Summary Of Project Information (SPI)
| Project Name | Latvia-Dauteks |
| |
| Region | Europe |
| Sector | |
Project No008908
Projected Board DateMay 30, 1998
Company NameDauteks
Technical Partner and/or Major Shareholders
Asean Interests Ltd. (Hong Kong) -- an investment arm of the Tolaram Group of Companies (Singapore) owns 86.6% of Dauteks.
Project Cost Including Proposed IFC Investment
Total project cost is US$83.51. IFC to invest up to US$20 million consisting of (1) an IFC A loan of up to US$15 million, and (2) IFC equity of up to US$5 million.
Location of Project and Description of Site
Dauteks is located in Daugavpils, Latvia, approximately 230 km from the capital, Riga.
Description of Company and Purpose of Project
The project is the rehabilitation and modernization of Dauteks, the only nylon 6 yarn and textiles company in Latvia. The objectives of the investment program are: (i) optimizing the existing infrastructure and equipment; (ii) installing new technology; (iii) improving efficiency and quality. After implementing the proposed modernization program Dauteks is expected to become a major player in the European textile and technical yarn markets.
IFC’s investment will have a positive development impact in many areas. Dauteks is one of the largest companies in Latvia and currently employs approximately 3,400 people. Without the acquisition by Tolaram Group and the implementation of the modernization program proposed under the project, Dauteks would not have been able to emerge from insolvency and its 3,400 employees would have lost their jobs. Regional development is an important strategic goal of the Latvian Government which is actively supporting investments outside the capital area. The proposed project will also have a positive environmental impact by introducing significant gains in energy efficiency in the operations of the Company.
Environmental Category and Issues
This is a category B project according to IFC's environmental review procedures. The following potential environmental, health and safety impacts of this project were analyzed: air emissions, wastewater treatment, socio-economic impacts, redundancies in workforce, and employee health and safety. Air emissions from Dauteks’ core business, polymer production, will be brought in compliance as a result of the project. A boiler house located adjacent to and owned by the Company is currently leased to the city of Daugavpils for domestic heating purposes. Dauteks will construct an internal wastewater treatment facility which will ensure compliance with local regulations and World Bank guidelines before project completion. The Dauteks plant went bankrupt in 1995. A successful revitalization of the Company has a significant positive socio-economic effect. For the time being lay-offs, with the exception of retirement or misconduct, are not being considered. Dauteks has an established safety and training organization.
The is from the Public Information Center.
| Date SPI sent to InfoShop | April 23, 1998 |
“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 |
|
| 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). |
|
|
|