Summary of Proposed Investment
Project Number
7424
Company Name
Shanghai Krupp Stainless Co., Ltd.
Date SPI Disclosed
Dec 19, 1997
Country
China
Industry
Manufacturing
Status
Completed
Sector
Re-Rolling and Drawing of Purchased Steel
Department
Regional Industry - MAS Asia & Pac
Environmental Category
A - Significant
Previous Events
Approved : Apr 20, 1998
Signed : Sep 22, 1999
Invested : Feb 1, 2001
Project Description
Summary Of Project Information (SPI)
| Project Name | China-Shanghai Krupp Stainless Steel Ltd. (SKS) |
RegionAsia
Sector
Project No007424
Projected Board DateMarch 15, 1998
Company NameShanghai Krupp Stainless Steel Ltd.
Technical Partner and/or Major Shareholders
The Project Company Shanghai Krupp Stainless was founded in 1997. Technical partner and majority shareholder of the Project is Krupp Thyssen Stainless GmbH (KTS), with 60% of the equity. KTS is the world’s largest producer of cold rolled stainless steel.
Shanghai Pudong Steel (SPS) will hold the remaining 40% of the equity and is one of China’s largest steel companies with a production of 2 million tons per year.
Project Cost Including Proposed IFC Investment
The project cost, representing the first phase of a $1.4 billion fully integrated stainless steel project, is currently estimated at $300 million. IFC’s proposed investment would consist of an A Loan of about $30 million and a syndicated B Loan of about US$60 million for the account of participating banks. The German bank Kreditanstalt fuer Wiederaufbau (KfW) intends to provide export credit financing of about $90 million on a parallel basis.
Location of Project and Description of Site
The project is located in Pudong, a suburb of the city of Shanghai. Pudong has been designated for further industrial development. The project site covers an area of about 40 ha and has been designed to allow for the future expansion of the plant.
Description of Company and Purpose of Project
(include IFC’s Role and Development Impact)
The Company will be one of the largest cold-rolling mills in China with a capacity of 72,000 tons of bright annealed stainless steel per year. Cold rolled stainless steel flats are needed in the construction sector, automotive and process industries, as well as for kitchenware and household uses. Demand for stainless cold rolled flats in China has increased strongly over the past years, more than 80 % of which has to be imported as there is only limited domestic production so far. The project will lessen China’s dependence on imports and support China’s industrial growth. By providing long term limited recourse financing for this project, IFC plays a catalytic role in assisting major international players, such as KTS, to transfer state of the art technology and know how to China as well as in mobilizing funds from international commercial banks for the development of the private sector.
Environmental Category and Issues
This project involves the design, construction and operation of a new stainless steel manufacturing facility in the Pudong industrial development zone, Shanghai, People''s Republic of China. This is an environmental review Category A project. The facility will be located adjacent to the Chinese sponsor''s existing steel plant, and will utilize parts of the existing infrastructure. The facility will be designed according to Western European standards, and will fully comply with both local and World Bank guidelines. The land for the facility is currently occupied partly by the Chinese sponsor, partly by other industries, partly by farm collectives and residential areas. A comprehensive Resettlement Action Plan (RAP) has been developed, in cooperation with the affected parties, to manage the required resettlement and mitigate its negative effects and has been attached to the Environmental Assessment for the project.
The are December 22, 1997 from the Public Information Center.
| Host country location of environmental documents | IFC Beijing Office |
Date SPI sent to InfoShop December 19, 1997
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact:
Corporate Relations Unit
Telephone: (202) 473-3800
Fax: (202) 974-4384
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
Related ESRS/ERS
