Summary of Proposed Investment
Project Number
7723
Company Name
Empesca S.A. Construçoes Navais, Pesca e Exportaçao
Date SPI Disclosed
Aug 12, 1997
Country
Brazil
Industry
Agribusiness and Forestry
Status
Completed
Sector
Other Food
Department
Regional Industry MAS LAC & EUR
Environmental Category
B - Limited
Previous Events
Approved : Oct 14, 1997
Signed : Oct 23, 1997
Invested : Dec 11, 1997
Project Description
Summary Of Project Information (SPI)
| Project Name | Brazil : Empesca S/A |
| Region | Latin America |
Sector
Project No007723
Projected Board DateSeptember 30, 1997
Company NameEmpesca S/A Construcoes Navais, Pesca e Exportacao
Technical Partner and/or Major Shareholders
The major shareholders are the Gomes de Carvalho brothers who through Empesca S/A own between 93% and 99% of about 21 separate companies operating in agribusiness, automobile dealerships, and financial services. Empesca is the leading Brazilian exporter of shrimp and lobster, the fifth largest exporter of cashew nuts, and a leading exporter of corned beef with 1996 gross sales of US$843.6 million equivalent.
Project Cost Including proposed IFC investment
The project cost is estimated at US$71.8 million and the proposed IFC investment includes a loan of US$35 million of which US$10 million may be convertible into Empesca S/A shares.
Location of project and Description of site
The project includes three components: fishing, cashew nuts, and processed meat and fish products. Empesca’s fishing and fish processing facilities are located in the northeast states of Ceará, Rio Grande do Norte, and Pará. Its cashew nut processing facility is also located in the state of Ceará, and its meat processing plant is located in Barretos, western São Paulo state.
Description of Company and Purpose of Project
Empesca S/A is Brazil’s leading exporter of shrimp, lobster and catfish. It is also a the fourth and fifth ranked exporter of processed beef and un-toasted cashew nuts respectively. Empesca owns Brazil’s largest fishing feet together with fish processing plants all located in the northeast states of Ceará and Rio Grande do Norte. The proposed investment entails expansion of existing operations, and the production of a variety of fish and beef-based value-added processed products as well as roasted cashew nuts for the domestic market. Demand for these products have increased substantially over the past three years with the advent of the Real Plan in Brazil which increased disposable income especially of the lower-middle classes. The project also provides for the restructuring of Anglo Alimentos S.A., Empesca’s meat plant whose acquisition was completed recently.
Through this project IFC will promote the modernization of the fishing sector in Brazil, assist in the development of Brazilian fish-based processed products, and expand the local cashew nuts industry, all located in the poor northeast region. IFC would also be assisting a family-owned medium-size enterprise to re-organize its operations, make them more transparent so that in the future it can tap the domestic capital market.
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 : air and water emissions; solid waste handling and disposal; sustainability of fish stocks; fire protection and emergency response; and general worker health and safety. Air emissions and liquid effluents from all facilities are being treated to ensure compliance with World Bank guidelines. Solid wastes are recycled where appropriate or disposed in approved facilities. No CFCs are used as refregirants in any facilities. Comprehensive employee safety and fire prevention programs are in place, along with training programs in safety and emergency response. The company is preparing a comprehensive Environmental Management Plan for the project. Information available on the status of target fish species is very limited, and IFC is requiring the sponsor to carry out a study of the sustainability of fish stocks as a basis for future planning. IFC will require annual reports from the sponsor on its environmental management and will carry out regular monitoring of this project.
The is August 30, 1997 from the Public Information Center.
| Host country location of environmental documents | n/a |
Date SPI sent to PIC August 12, 1997
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (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
