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| Description of company and purpose of project |
Societe Nationale D’Industries Nutritive (Sonut or the company) is a licensed bottler of The Coca-Cola Company. It produces a full range of carbonated soda drinks (CSDs), including mixers, real fruit flavored drinks and colas; and natural water under the Schweppes brand name. Sonut sells its beverages nation-wide through Trade Line, a sister company and its distributor. Sonut’s bottling plant is located in Sadat City, which is about 100 km from Cairo-Giza. The plant occupies a large lot of 81,222 sq. meters.
Sonut’s investment program will include a new PET bottling line, using Sidel and Simonazzi equipment. The new PET line will expand bottled water production and free-up the existing PET line for CSDs, as was this line’s original purpose. This will promote higher volumes and sales of both CSD and bottled water. The project also includes the purchase of new 350 ml bottles and crates. Long-term financing will recalibrate Sonut’s balance sheet, by refinancing some bank and supplier debt. |
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| Project sponsor and major shareholders of project company |
The project sponsor is the Societe National D’Investissement (Sonid), one of Egypt’s largest private sector business groups. Sonid was established in 1963 and has activities in four main business sectors:
- construction and building materials,
- real estate development,
- automotive and
- food and beverage.
Sonid’s shareholders include Mr. Sami Saad Mosaad Saad of Egypt and family members. Sonid is the majority shareholder of Sonut and Trade Line. |
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| Total project cost and proposed IFC investment |
| The total project cost is estimated at $28 million, and the proposed IFC investment is a loan of approximately $14 million for IFC’s own account. The investment will finance: capital equipment and improvements, packaging bottles and crates, working capital, and refinancing of bank and supplier debt. |
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| Location of project and description of site |
Project location is:
Sonut
Regional Road
Sadat City
Menoufia,
Egypt |
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| Project Development Impact and IFC's Role |
The project will improve Sonut's utilization of existing bottling lines for CSDs and expand PET bottling capacity for natural water through the installation of a new PET bottling line. New crates and bottles will permit production increases. The result will be higher market shares and increased sales revenues.
The project’s developmental impact will include:
- incremental tax generation,
- indirect employment and micro enterprise development through increased kiosk and small retailer distribution, and
- supplier benefits by expanding demand for locally produced packaging materials.
IFC’s role will include providing technical advice with regard to the structuring and funding of the Financial Plan, advisory assistance with regard to increasing corporate and managerial efficiencies, specialists’ inputs regarding industry and environmental practices, and building confidence of stakeholders in the company’s future. |
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| 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 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. The following environmental, social and health and safety issues associated with this project were analyzed:
- Food safety
- Environmental management system
- Quality and sustainability of water resources
- Emissions to the environment
- Solid and hazardous waste management
- Occupational health and safety
To view the environmental documents for this project, click here |
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| Location of environmental documents in locally affected community |
The Environmental Review Summary and Corrective Action Plan are available for review at the following location:
Sadat City Investors Association
28 Aby Zer Elghafary
1st Residential District
Sadat City
Menoufia
Egypt |
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| To contact the project company, please write to: |
Mr. Bassel Sami Saad,
Chairman
8 Mansouria Road, Abram
Giza, Egypt |
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