LDC is a 51/49 joint-venture between Lenzing AG (“Lenzing”) and Duratex S.A (“Duratex”). Headquartered in Austria, Lenzing is a global producer of wood-based cellulose fibers. Headquartered in Brazil, Duratex is a producer of industrialized wood panels, metal fittings and ceramic tiles.

 The Project is estimated to cost US$1.8 billion, to be financed with long-term debt and equity. The proposed IFC investment consists of an up to US$200 million A Loan, an up to US$50 million MCPP Loan and an up to US$250 million B Loan.

 The DWP plant will be constructed near the municipalities of Araguari and Indianopolis, in the state of Minas Gerais, Brazil.

 This is a Category A project according to IFC’s Policy on Environmental and Social Sustainability because it may cause significant adverse E&S impacts that may be diverse and irreversible. During its peak construction period, the project will directly employ nearly 8,000 workers with the attendant stress that such a population influx will have on public services and security of nearby municipalities, and the occupational health and safety risks of large construction sites. During operations, the mill will require large quantities of inputs (i.e. wood, chemicals) with the associated risks of vehicular accidents from log hauling and hazardous materials transportation. Wood will be secured from 44,000 ha of existing plantations but the project will require the acquisition (through lease) of additional 26,000 ha. The mill will also generate large amounts of air and water emissions with the potential to impact the air and water quality in the project’s area of influence.