The project sponsor is China Synthetic Rubber Corporation (CSRC), that owns 86.2% of the company indirectly through its wholly owned subsidiary, CSRC Singapore Limited. Founded in 1973, CSRC is one of the world’s leading carbon black producers and technology providers. CSRC became a listed company in 1986 and its shares are freely traded on the Stock Exchange.

The total project cost is estimated at $27.4 million. IFC’s proposed investment is $12 million, consisting of an equity investment of up to $1.0 million and an A loan of up to $11.0 million.

12.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	11.0
Equity	1.0

* These investment figures are indicative

The project is located in the industrial area of Cihu, a major industrial complex in the northwest section of Maanshan city in the Chinese province of Anhui, about 300 km west of Shanghai. At present, the area of the project site is approximately 137,158 m2 covering the carbon black production lines, power generation facility, feedstock storage, warehouse and administration buildings. As an expansion program, the project company may purchase the land use rights for an additional three adjacent lands to the current project site totaling 47,533 m2 some of which will cover two new production lines and the remainder reserved for future use.

The project will further transfer advanced technology and managerial know-how from the sponsor to the local workforce by: - improving environmental standards adding new co-generation capacity which results in more efficient use of energy; - contributing to the development a local city by creating 50 additional indirect jobs through an SME; - supporting an important industry and helping sustain the growth in the tire industry and highway expansion. Monitoring of the development impact will focus primarily on the level of production and margins on the company. The proposed IFC investment will continue to assist the company in achieving their corporate goals of maintaining market share and reducing operating costs through economies of scale by providing long-term financing. The company considers continued partnership with IFC essential for the sustainable development of the company through IFC’s advice and expertise on the financial, technical, environmental, social and legal aspects of the project.

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/or social impacts may result, which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.

Further details are provided in the Environmental Review Summary separately available with this document.
Location of environmental documents in locally affected community
Environmental documents, including the ERS and EAP, will be posted at the notice board of the Maanshan City Library. In addition, the announcement of the public disclosure of ERS will be announced via ads in the local newspapers.