PROJECT

Projects

Summary of Proposed Investment

Project Number

7114

Company Name

Corporacion Cressida, S.A. de C.V.

Date SPI Disclosed

Mar 10, 1997

Country

Honduras

Industry

Manufacturing

Status

Completed

Sector

Soap and Cleaning Compound (Soap, Detergent, etc.)

Department

Gbl Ind, Manufact, Agribus & Services

Environmental Category

B - Limited

Previous Events

Approved : May 30, 1997
Signed : Jun 26, 1997
Invested : Jul 10, 1998

Project Description

Summary Of Project Information (SPI)

Project NameHonduras-Cressida
     
RegionLatin America & Caribbean
Sector
Project No007114
Projected Board DateApril 30, 1997
Company NameCressida International Investments Corporation (“CIIC”)
Technical Partner and/or Major Shareholders

CIIC is 60% owned by Bristol Channel Investments Corporation, both Panamanian corporations, and 40% owned by Miguel Facusse. Bristol Channel Investment Corporation is wholly-owned by Miguel Facusse.

Project Cost Including proposed IFC investment

The total cost of the Project is US$80.3 million. IFC will invest up to US$45 million as follows: US$10 million in an “A” loan, US$5 million in a convertible loan, US$5 million in a direct equity investment, US$5 million in a standby loan, and the remaining US$20 million in a “B” loan for the account of participants.

Location of project and Description of site

The project will be located in three main industrial sites: (a)Comayagua, Honduras - new manufacturing complex to include a soap and detergent facility, a sulfonation plant, a glycerin recovery facility, and an edible-oil refinery. This complex will incorporate new buildings and machinery, with existing equipment and parts of two old Cressida industrial sites that will be closed down and relocated into the new industrial area. In addition, the Comayagua site will also include the expansion and modernization of existing tomato-based and food and fruit beverages production facilities; (b) San Pedro Sula, Honduras - expansion and modernization of an existing snacks plant; and (c) San Salvador, El Salvador - expanding and modernizing existing soap, detergents and cleaning products facility.

Description of Company and Purpose of Project

CIIC is the holding company of a highly successful Honduras-based family-run group with manufacturing and marketing of two main lines of goods throughout the Central American region: (a) laundry soap and detergent, bleach, cleaners and personal hygiene; and (b) food products (mainly tomato-based), fruit juices and snacks. With the implementation of the Project, the Company will increase production capacities and lower production costs, while expanding its line of products into the edible oil industry. Operations are vertically integrated from agricultural production (including palm-oil) to manufacturing and distribution in Central America and Panama. With sales of US$168 million, total assets of US$200 million, and cash flow of US$12 million, Cressida is Honduras’ largest economic group. During fiscal year 1996, the Company obtained a gross margin of 38%, with a net margin of 5.1%. The Cressida group was founded in 1961 and currently has over 6,000 employees, mainly from substantial “upstream” agricultural holdings.

Environmental Category and Issues

This is a category B project according to IFC''s environmental review procedure. Environmental, occupational health and safety issues associated with this project include land use, air emissions, liquid effluents, waste disposal, fire and explosion prevention and employee exposure to noise and dust. The sponsor will develop and implement a Corrective Action Plan (CAP) to reach environmental compliance in all the facilities. The Environment Division will monitor the appropriate development of the CAP.

The is March 14, 1997 from the Public Information Center.
Date SPI sent to PIC March 10, 1997

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