Summary of Proposed Investment
Project Number
4838
Company Name
Nemak, S.A.B. de C.V.
Date SPI Disclosed
Jun 19, 1995
Country
Mexico
Industry
Manufacturing
Status
Completed
Sector
Motor Vehicle Parts
Department
Gbl Ind, Manufact, Agribus & Services
Environmental Category
B - Limited
Previous Events
Approved : Jan 22, 1996
Signed : May 24, 1996
Invested : Jun 27, 1996
Project Description
Summary Of Project Information (SPI)
| Project Name | Mexico-Nemak |
| Region | Latin America and Caribbean |
Sector
Project No004838
Projected Board DateJuly 30, 1995
Company NameNemak, S.A.
Technical Partner and/or Major Shareholders
Nemak is privately held and owned 60% by Grupo Industrial Alfa, a Monterrey-based conglomerate, and 20% each by Ford and Teksid, a wholly-owned subsidiary of Fiat.
Project Cost Including proposed IFC investment
US$90.2 million. Proposed IFC Investment: US$65 million. (US$24 “A”, US$35 “B”, US$6 “C”)
Location of project and Description of site
Garcia, Nuevo Leon, Mexico. The site is located in an industrial park in the western part of the city.
Description of Company and Purpose of Project
Nemak, S.A. is the leading Mexican producer of aluminum cylinder heads for automotive engines. IFC has been asked to help finance the expansion and modernization of Nemak’s manufacturing operations, including an upgrading of its environmental facilities.
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, liquid effluent treatment and discharge, solid waste recycling, spill prevention and control, fire protection and emergency response. The Nemak expansion will use natural gas supplied via local pipeline network. Natural gas is a clean energy supply and the air emissions will be in compliance with both local requirements and World Bank guidelines. Cooling water is recycled in a closed system and liquid effluents will be treated to comply with local requirements and World Bank guidelines. Treated wastewater will be used for irrigation within the site. Solid and industrial waste in the form of aluminum chips and refuse will be collected and recycled as raw material. A contingency plan, including an emergency evacuation plan, has been prepared to address potential spills and related emergencies. The manufacturing process involves high temperatures and proper fire fighting equipment, fire alarms and training in fire fighting is foresee. IFC will ensure ongoing compliance with World Bank guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by Nemak and by conducting periodic supervision.
The is June 19, 1995 from the Public Information Center.
| Host country location of environmental documents | P.O. Box A-100, Monterrey, Nuevo Leon, C.P. 66000 Mexico |
| Date SPI sent to PIC | June 19, 1995 |
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
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