Summary of Proposed Investment
Project Number
7021
Company Name
Alpargatas, S.A.I.C.
Date SPI Disclosed
Aug 29, 1995
Country
Argentina
Industry
Manufacturing
Status
Completed
Sector
Integrated Textile Operation (Spinning, Weaving/Knitting, but no Garment )
Department
Regional Industry MAS LAC & EUR
Environmental Category
B - Limited
Previous Events
Approved : Mar 21, 1996
Signed : Jul 11, 1996
Invested : Jul 16, 1996
Project Description
Summary Of Project Information (SPI)
| Project Name | Argentina-Alpargatas CP |
| Region | Latin America and Caribbean |
| Sector |
Projected Board DateSeptember 29, 1995
Company NameAlpargatas S.A.I.C.
Technical Partner and/or Major Shareholders
The Company’s largest shareholders are Grupo San Remigio and Grupo Roberts. Greenwood Denim Mills owns a 20% share in the Company’s textile business, and Alpargatas manufactures athletic shoes under license and in joint venture with Nike.
Project Cost Including proposed IFC investment
Textile Capital Expenditures US$50 million Financial Restructuring US$120 million Total Project Cost US$170 million IFC Financing: A Loan - US$20 million B Loan - up to US$40 million C Loan - up to US$120 million
Location of project and Description of site
The textile division has six plants, five of which are located in Argentina and one of which is located in Uruguay.
Description of Company and Purpose of Project
Alpargatas is Argentina’s largest producer of textiles and athletic shoes. The Company plans to undertake a capital expenditures program for its textile operations and to restructure shorter-term debt. The main problem currently facing the Company is financial, as credit lines have become extremely difficult to revolve following the Mexican crisis. This project would provide Alpargatas with long-term funding from IFC and participant banks and would enable the Company to achieve stable, credit-supported access to the U.S. commercial paper market.
Environmental Category and Issues
This is a category “B” project according to IFC’s environmental review procedure. Environmental issues associated with the project include air emissions, liquid effluents and solid wastes. Occupational health and safety issues include fire prevention, and employee exposure to noise, dust and chemical substances. The sponsor will be requested to establish a Corrective Action Plan (CAP) to ensure existing facilities are upgraded, as required, to meet the applicable World Bank guidelines.
The is September 8, 1995 from the Public Information Center.
| Date SPI sent to PIC | August 29, 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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