Summary of Proposed Investment
Project Number
7141
Company Name
SAO PAULO ALPARGATAS S.A.
Date SPI Disclosed
Apr 12, 1996
Country
Brazil
Industry
Manufacturing
Status
Completed
Sector
Shoes and Leather Products
Department
Gbl Ind, Manufact, Agribus & Services
Environmental Category
B - Limited
Previous Events
Approved : Oct 21, 1996
Signed : Nov 20, 1996
Invested : Apr 24, 1997
Project Description
Summary Of Project Information (SPI)
| Project Name | Brazil-São Paulo Alpargatas S.A. (“SPASA”) |
| Region | Latin America and Caribbean |
| Sector |
Projected Board DateMay 30, 1996
Company NameSão Paulo Alpargatas S.A. (“SPASA”)
Technical Partner and/or Major Shareholders
SPASA’s stock is owned by about 6,500 shareholders. The controlling shareholders are: Camargo Corrêa, a Brazilian construction company which holds 33.5% of the common stock, Bradesco (21.2%) and Banco Itaú (4.9%), two leading Brazilian private banks, and Previ (12.6%), the pension fund of Banco do Brasil.
Project Cost Including proposed IFC investment
US$116 million; IFC investment of US$50-70 million, of which US$30 million for IFC’s own account and US$20-40 million for the account of participant banks.
Location of project and Description of site
Five plants will be located in Brazil’s Northeast (states of Rio Grande do Norte, Paraíba and Pernambuco) and five in the South (states of Minas Gerais, São Paulo and Rio Grande do Sul).
Description of Company and Purpose of Project
SPASA is a Brazilian group that manufactures shoes, garments and tarpaulins. As part of an overall modernization process, SPASA is implementing a three-year investment program estimated to cost US$116 million, aimed at meeting the growing demand for shoes in Brazil, increasing productivity, installing environmental improvements and reducing fixed and variable unit costs.
About half of the investment will be made in the Northeastern region of Brazil. This region has traditionally been among the country’s least developed and by financing this program, IFC will be meeting IBRD’s and Brazil Government’s objective of reducing poverty and stimulating development in this region. In addition, IFC’s financing will help SPASA remain competitive in face of increased competition (particularly from imports) and will allow the Company to provide basic goods for the population, particularly sandals, at better quality and lower cost. Without IFC’s umbrella, SPASA would not have the ability to raise the necessary long-term funds from commercial banks.
Environmental Category and Issues
This is an environmental review category B project; principal issues involve air emissions, liquid effluents, spill prevention, solid wastes, fire prevention and emergency response, and employee protection from noise, dust and hazardous substances. SPASA has presented plans to address these issues and demonstrate the proposed new facilities will comply with applicable governmental and World Bank requirements. SPASA’s existing facilities generally comply with governmental regulations, but the Company has prepared, in conjunction with IFC, an Environmental Improvement Plan (EIP) for upgrading the existing facilities to meet applicable World Bank guidelines; key actions include the installation of wastewater treatment and spill prevention improvements, and provisions for supervisory and employee training, including fire prevention, emergency response, hazards recognition and use of personal protective equipment.
The is available from the Public Information Center.
| Date SPI sent to PIC | April 12, 1996 |
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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