Environmental Review Summary
Project Number
11670
Company Name
DEWAN SALMAN FIBRE LTD
Date ERS Disclosed
Sep 3, 2002
Country
Pakistan
Region
Middle East
Environmental Category
B - Limited
Status
Active
Previous Events
Approved : Nov 14, 2002
Signed : Nov 18, 2002
Invested : Jan 15, 2003
Sector
Man-Made Fibers (Including Nylon, Polyester, Rayon, etc.)
Industry
other
Department
Gbl Ind, Manufact, Agribus & Services
Project Description
The project sponsor, Dewan Mushtaq Group, is one of Pakistan''s largest conglomerates with a long-established reputation in the local industrial and banking community. The project company (DSFL, "the company") is publicly listed and 51% owned by the Dewan Mushtaq Group. Mitsubishi Corporation and Samyang Corporation (Korea) each hold a 11% equity share in the company. The remaining share holding is held by institutions and the general public. The project will be adjacent to the company''s existing production facilities at Dewan Farooque Industrial Park in Hattar, which is located at about 70 kilometers from Islamabad in the North West Frontier Province.
The project involves the company''s expansion into specialty fiber manufacturing, and the refinancing of existing long-term debt together with financing for long-term working capital requirements. The project''s development impact is expected to be significant as it will enhance the long-term sustainability of one of Pakistan''s largest private sector groups providing a key input to the textiles industry, which is the country''s most important industrial sector and major foreign exchange earner (about 60% of total exports). In addition to providing direct employment, the project will also support indirect employment by enhancing the viability of downstream textiles customers and local suppliers.
The project involves the company''s expansion into specialty fiber manufacturing, and the refinancing of existing long-term debt together with financing for long-term working capital requirements. The project''s development impact is expected to be significant as it will enhance the long-term sustainability of one of Pakistan''s largest private sector groups providing a key input to the textiles industry, which is the country''s most important industrial sector and major foreign exchange earner (about 60% of total exports). In addition to providing direct employment, the project will also support indirect employment by enhancing the viability of downstream textiles customers and local suppliers.
Environmental and Social
Conclusion & Monitoring
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