SAIC is owned by Fung Lam Trading Company Ltd., Hong Kong (70%), and Shinyou Shoji Ltd., Japan (30%). Fung Lam Trading Company is owned by Mr. Alim Husin and his family. The Alim Family controls the Maspion Group of Indonesia, which is one of the largest diversified business groups in East Java, Indonesia. Shinyou Shoji, an entertainment company owning game/bowling centers, is owned by Mr. Liu You Rong, based in Japan and a long-time friend of Mr. Alim Husin. The Alim Family has started with a small aluminum kitchenware business in 1962 and subsequently diversified into activities in consumer durables, electronics, chemicals, packaging materials, metal rolling, construction materials, industrial estate development and banking. The Maspion Group currently employs about 25,000 people in 38 companies, 14 of which are joint ventures with well-known multinational corporations such as Siam Cement of Thailand (PVC resin), Kanematsu (stainless steel sheet), and Marubeni (stainless steel pipe).

The total project cost is estimated at $38 million. The proposed IFC Investment is an A Loan of up to $12 million.

12.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	12.0
Equity

* These investment figures are indicative

SAIC occupies a land area of 240,000 square meters, of which 50,000 square meters are occupied by facilities. SAIC is located in the Rong Qiao Economic and Technological Development Zone, Fu Qing City in Fujian Province, South of China. SAIC is 60 km from Mawei Port and 21 km from Rongqiao Port.; it has a convenient and perfect communication and transport facilities as well as a beautiful environment. SAIC is a large scale and modern aluminum processing set up, employing fully automated and computerized aluminum rolling mills and equipment from Germany, Switzerland, Belgium, and U.S.A., combined with a skilled workforce, including a number of specialists in the field of casting, rolling and finishing processing of aluminum sheet and foil.

The project is determined to be environment category B. In relation to the proposed expansion project, IFC will ensure that the equipment complies with IFC Environmental, Health and Safety requirements. In addition, opportunities for cleaner production and improved workplace safety and comfort (through noise reduction) will be explored during the planning stage. In terms of the existing operations, an additional pollutant abatement equipment is required, together with housekeeping improvements and development of the environmental, health and safety management systems (EMS). Cost of theses improvements are included in the project cost.

Location of environmental documents in locally affected community
The environmental documents will be made available at the Fuqing Municipality Building and the SAIC’s Offices: Rong Qiao Economic & Technological Development Zone, Fuqing, Fujian, China P.C. 350301

Project Development Impact: The project is expected to: - Enhance the competitiveness of SAIC by enabling the company to significantly expand capacity at low cost. Unit operating costs are expected to decline as better economies of scale are achieved. - Downstream industrial customers, such as house ware, packaging, and construction are expected to gain from the improved quality of production at lower cost compared to imported material. - Provide 60 new jobs, and sustain 500, directly at SAIC and increase employment opportunities indirectly at service providers to SAIC both at the project implementation and production stages. - Develop the network of SAIC's distributors, providing additional employment opportunities. IFC Role: - Support SAIC in maintaining its long-term competitiveness. - Bring higher value added products as a result of the project. - Facilitate a long-term financing to the project. - IFC's involvement in the project would promote focus on corporate governance practices. - IFC's investment would also be instrumental in having an environmental review of SAIC's operations and undertaking necessary measures for improvements in this area.