The main shareholder and company sponsor is Lenzing A.G. In 2007, a leading viscose producer in the world and operator of an integrated 225,000 tons per annum (tpa) fiber and a 240,000 tpa pulp plant in Austria. The remaining shareholdings are held by PT Pura Golden Lion (11.92%) and Mrs. Saqarsih Noor Luddin (2.29%). The former is the local partner and the domestic selling agent for SPV; and the latter a natural person.

The project is expected to cost $191 million. IFC is considering an A Loan of up to $40 million and B Loan of up to $100 million to support the project.

40.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	40.0
Equity

* These investment figures are indicative

The project is being undertaken at the company’s existing site in Purwakarta, Indonesia.

The project supports the sustainable development of viscose industry by: - building new VSF capacities based on renewable raw material – dissolving grade wood pulp; - reducing the environmental impact through the nearly closed production cycle and by switching to gas-based CS2 production; and - maintaining employment of local people and creating additional jobs.

IFC’s role in this investment will be to: - Providing long-term financing to a competent industry player in the country where such financing is still not readily available; - Mobilizing long-term funds from the international market under the B Loan umbrella; - Serving as a dependable long-term partner who is there to provide support in difficult as well as good times in a perceived high risk country.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects.

The proposed project introduces modern production technologies that are energy efficient, allow for recovery of waste heat and will result in a net reduction in emissions to the environment.

While all Performance Standards (PS) are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards:

- PS 1: Social and Environmental Assessment and Management System
- PS2: Labor and Working Conditions
- PS3: Pollution Prevention and Abatement
- PS4: Community Health, Safety and Security

Environmental, social and health and safety issues identified during IFC''s review and any ameliorative measures are summarized in the Environmental and Social Review Summary (ESRS) and associated Environmental and Social Action Plan (ESAP) that South Pacific Viscose will implement as a part of IFC''s Loan Agreement. Upon successful implementation of the specific agreed mitigation measures, the proposed project is expected to comply with Indonesian laws and regulations, IFC Performance Standards and applicable sections of the corresponding guidelines.