Summary of Proposed Investment
Project Number
4693
Company Name
Nanjing Kumho Tire Co., Ltd.
Date SPI Disclosed
May 15, 1995
Country
China
Industry
Manufacturing
Status
Completed
Sector
Automotive Tires
Department
Gbl Ind, Manufact, Agribus & Services
Environmental Category
B - Limited
Previous Events
Approved : Sep 5, 1995
Signed : Oct 27, 1995
Invested : Aug 28, 1996
Project Description
Summary of Project Information (SPI)
Project Name China-Nanjing Kumho Tire Co., Ltd. (NKT)
Region Asia
Sector Manufacturing
Project Number 004693
Projected Board Date June 19, 1995
Company Name Nanjing Kumho Tire Co., Ltd. (NKT)
Technical Partner and/or Major Shareholders
Kumho & Co., Inc. (Kumho), which is expected to hold 51% of NKT’s registered capital, is the largest producer of tires in Korea, and is listed on the Korea Stock Exchange. The Kumho group of companies is also involved with transportation (Asiana Airlines, Inc.), and petrochemicals manufacturing. The local sponsor, Nanjing Tyre Factory, which is expected to hold 25% of NKT’s registered capital, is a state-owned enterprise which currently produces 400,000 tires per year of an older design.
Project Cost Including proposed IFC investment
Project cost is about US$119 million to be implemented in phases. IFC’s proposed investment includes an A loan of US$26 million, a B loan of about US$45.5 million, and an equity investment of about US$3.8 million for 8% of NKT’s registered capital.
Location of project and Description of site
The project will be on a greenfield site on the outskirts of Nanjing, a provincial capital about 250 miles from Shanghai.
Description of Company and Purpose of Project
NKT will have a production capacity of 2.4 million radial tires and 600,000 bias tires per annum to supply the rapidly growing demand for car and light truck tires in China.
Environmental Category and Issues
This is an environmental review category B project. Issues include air emissions, liquid effluents, solid and liquid wastes, land use, fire prevention, emergency response and employee exposure to noise, dust and hazardous materials. The sponsors will design and operate the plant to comply with Chinese and World Bank requirements. The sponsors have worked with the local collective to facilitate the relocation of about 100 families previously on the site, in accordance with a resettlement plan.
Date SPI sent to PIC May 15, 1995
The Environmental Review Summary is expected to be available on or about June 1, 1995 form the Public Information Center.
For additional information contact: Corporate relations Unit
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
Related ESRS/ERS
