Summary of Proposed Investment
Project Number
7251
Company Name
GRUPO KUO SAB DE CV
Date SPI Disclosed
Aug 25, 1995
Country
Mexico
Industry
Manufacturing
Status
Completed
Sector
Carbon Black
Department
Gbl Ind, Manufact, Agribus & Services
Environmental Category
B - Limited
Previous Events
Approved : Jun 4, 1996
Signed : Sep 25, 1996
Invested : Oct 3, 1996
Project Description
Summary Of Project Information (SPI)
| Project Name | Mexico-Grupo Irsa, S.A. de C.V. |
| Region | Latin America |
| Sector |
Projected Board DateOctober 30, 1995
Company NameGrupo Irsa S.A. de C.V. (GIRSA)
Technical Partner and/or Major Shareholders
GIRSA is a fully-owned subsidiary of Sociedad de Fomento Industrial, S.A. de C.V. (Desc), a large industrial conglomerate in Mexico. The company has major market shares in carbon black, synthetic rubber and chemical consumer products in Mexico. Desc is a diversified holding company with four principal subsidiaries active in automotive parts, chemicals, agribusiness and real estate, respectively Unik, GIRSA, Agrobios and Dine.
Project Cost Including proposed IFC investment
The project consists of a US$100 million investment program for modernization and expansion. IFC has been asked to structure a bankable financial package and provide a US$60 million loan, of which US$30 million would be for the account of participating banks.
Location of project and Description of site
GIRSA’s production facilities are located in Altamira (synthetic rubber, carbon black), Salamanca (adhesives, sealants), Coatzacoalcos (phosphates, polystyrene), Tlaxcala (polystyrene), Lechería (phosphates, emulsions), Vallejo (adhesives),Lerma (adhesives,laminates), Ocoyoacac (acrylics), San Luis Potosí (acrylics), Cosoleacaque(phenol, acetone, methylmethacrylate), Tula (acetone), Atlacomulco (pharmaceuticals), Zitacuaro (laminates), Morelia (sealants) and Querétaro (pigments).
Description of Company and Purpose of Project
Grupo Irsa S.A. de C.V. (GIRSA) is a major producer of synthetic rubber, carbon black, adhesives and sealants for industrial and consumer purposes, phosphates, polystyrene, acrylics, emulsions, pigments and decorative laminates. GIRSA is the only supplier of synthetic rubber and carbon black in Mexico and has a dominant position in the adhesive and sealant markets. The project consist of a US$100 million investment program designed to improve GIRSA’s overall competitiveness by debottlenecking capacity, increasing energy efficiency and consolidating production facilities. The project will also reduce the environmental impact of GIRSA’s operations and enhance safety by relocating plants from densely populated areas near Mexico City to distant industrial areas and eliminating the inland transport of hazardous chemicals.
Environmental Category and Issues
This is a category B project for the purpose of environmental review . Issues include air emissions, liquid effluents, spill prevention, solid and liquid wastes, fire prevention and emergency response, and control of employee exposure to chemical substances. GIRSA has established an effective Environmental, Health and Safety (EH&S) group called CASH (Control Ambiental, Seguridad e Higiene). CASH, in full cooperation with local authorities, periodically reviews EH&S matters at all facilities. CASH works closely with GIRSA management to identify actions required to ensure that all facilities meet relevant governmental and World Bank requirements; these actions are being organized into a Corrective Action Plan for review by IFC. For any facility to be closed as a result of the relocation program, GIRSA establishes a closure plan to address potential EH&S issues and take any remedial actions needed to meet governmental requirements.
The is September 15, 1995 from the Public Information Center.
| Date SPI sent to PIC | August 25, 1995 |
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 676-0365
This SPI was mistakenly submitted on 8/25/95 as No. 004154. It was revised on 6/9/97 after correction note of actual project number (007251)was received from Ismail Samji.
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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