Summary of Proposed Investment
Project Number
11208
Company Name
UNITED JOINT STOCK CO FOR PETROCHEMICAL INDUSTRIES
Date SPI Disclosed
Mar 26, 2002
Country
Syrian Arab Republic
Industry
Manufacturing
Projected Board Date
May 15, 2002
Status
Active
Sector
Petrochemical
Department
Regional Industry MAS MCT
Environmental Category
A - Significant
Previous Events
Approved : May 31, 2002
Signed : Jun 24, 2002
Invested : Jul 29, 2002
Project Description
The project consists of the construction and operation of a 40,000 mt/year linear alkyl benzene (LAB) plant and the necessary infrastructure outside of Damascus, Syria. Construction of the project has started in June 2001 and is progressing well. LAB is the major feedstock required to produce all kinds of detergents, from liquid soap to dishwasher powder.
The venture is an intermediate step towards backward integration of Mr. Daaboul''s detergent operations and will allow Daaboul Detergents to rely on in-house produced LAB instead of depending on supplies from abroad. It will be implemented as a greenfield project and will be incorporated as ''Daaboul Company for Chemicals & Petrochemicals Industries''. The venture will have a number of positive development impacts. The project is competitive locally and within the region, and will generate jobs and increase revenue through taxes. It will aslo support an entrepreneurial and competitive local private sector group of the sort that will be vital if Syria’s more liberal approach to private sector led economic development is to succeed. In addition, as one of IFC’s first financings in the Syrian market, the project will have a positive demonstration impact for local and foreign investors.
The venture is an intermediate step towards backward integration of Mr. Daaboul''s detergent operations and will allow Daaboul Detergents to rely on in-house produced LAB instead of depending on supplies from abroad. It will be implemented as a greenfield project and will be incorporated as ''Daaboul Company for Chemicals & Petrochemicals Industries''. The venture will have a number of positive development impacts. The project is competitive locally and within the region, and will generate jobs and increase revenue through taxes. It will aslo support an entrepreneurial and competitive local private sector group of the sort that will be vital if Syria’s more liberal approach to private sector led economic development is to succeed. In addition, as one of IFC’s first financings in the Syrian market, the project will have a positive demonstration impact for local and foreign investors.
IFC''s environmental and technical input will be crucial to smoothen the project''s implementation and make the daily operations safe. With this investment, IFC demonstrates its commitment to support local entrepreneurs and to help improve the long-term competitiveness of a family-owned business.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mohammad F. Al-Homsi, Deputy General Manager
Daaboul Economic Group
P.O. Box 1606, Damascus - Syria
Phone: (+963-11) 631-1650
Fax: (+963-11) 631-2176
E-mail: daaboulco@net.sy
Daaboul Economic Group
P.O. Box 1606, Damascus - Syria
Phone: (+963-11) 631-1650
Fax: (+963-11) 631-2176
E-mail: daaboulco@net.sy