Summary of Proposed Investment
Project Number
3500
Company Name
CHAPECO - COMPANHIA INDUSTRIAL DE ALIMENTOS
Date SPI Disclosed
May 23, 1995
Country
Brazil
Industry
Agribusiness and Forestry
Status
Completed
Sector
Animal Slaughtering and Processing
Department
Gbl Ind, Manufact, Agribus & Services
Environmental Category
B - Limited
Previous Events
Approved : Nov 11, 1993
Signed : Nov 16, 1993
Invested : Jan 28, 1994
Project Description
Summary Of Project Information (SPI)
| Project Name | Brazil - Chapeco II |
| Region | LAC |
Sector
Project No.003500
Projected Board DateJuly 3, 1995
Company NameChapecó Companhia Industrial de Alimentos
Technical Partner and/or Major Shareholders
The main operating company of the Chapecó group, Chapecó Companhia Industrial de Alimentos (CCIA), is 97.2% owned by S. A. Indústria e Comércio Chapecó (SAIC), the Chapecó’s Group holding company. Besides CCIA, SAIC has two subsidiaries involved in road and air transport. SAIC is listed in the São Paulo stock exchange.
Project Cost Including proposed IFC investmentUS$60 million. Proposed IFC Investment: “A” Loan: US$15 million “B” Loan: US$5 million and equity of up to US$3 million.
Location of project and Description of site
The production facilities to be expanded and modernized are located as follows: one poultry processing plant and two pork processing plants are located in the State of Santa Catarina do Sul, and one poultry plant is located in the State of São Paulo.
Description of Company and Purpose of Project
Chapecó Companhia Industrial de Alimentos is undertaking a US$60 million expansion and modernization program to upgrade and expand its operations, strengthen distribution and reinforce its capital structure. Chapecó Companhia Industrial de Alimentos is the fifth largest poultry and fourth pork meat processor in Brazil, and operates two integrated poultry facilities (Xaxim and Amparo) and two pork facilities (Chapecó and São Carlos). The proposed expansion and modernization program would include (i) debottlenecking investments to help increase production to meet increasing market demand; (ii) an investment in training and quality control to meet the rising quality and health standards in its main export markets (the EU and Japan); (iii) investments in distribution necessary for the increase in production; and (iv) a strengthening of the Company’s financial structure. The proposed program will have significant developmental and environmental benefits. Among others, the program will benefit the 2,000 outgrowers and contract farmers that supply livestock to Chapecó’s processing plants. The proposed program builds on the Company’s prior expansion and modernization project, which started in 1993 and which was supported by IFC through both loan and equity (IFC/R93-185).
Environmental Category and Issues
This is a category B project according to IFC’s environmental review procedure. Environmental and occupational and health issues associated with this project include air emissions, solid waste management, liquid effluents, safe handling of food additives and CFC free equipment.
The is from the Public Information Center.
| Date SPI sent to the PIC | May 23, 1995 |
telephone: (202) 473-7711
facsimile: (202) 676-0365
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
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