PROJECT

Projects

Summary of Proposed Investment

Project Number

7727

Company Name

Sucorrico S.A.

Date SPI Disclosed

Aug 29, 1996

Country

Brazil

Industry

Agribusiness and Forestry

Status

Completed

Sector

Fruit and Vegetable Preservation or Processing (Canning, Freezing, Drying, Jams, etc.)

Department

Regional Industry MAS LAC & EUR

Environmental Category

B - Limited

Previous Events

Approved : Oct 9, 1996
Signed : Oct 24, 1996
Invested : Nov 26, 1996

Project Description

Summary Of Project Information (SPI)

Project NameBRAZIL-Sucorrico
RegionLatin America
Sector
Project No007727
Projected Board DateOctober 15, 1996
Company NameSucorrico S/A
Technical Partner and/or Major Shareholders

Mr. Lair Antonio de Souza, a local entrepreneur and orange grower.

Project Cost Including proposed IFC investment

Project cost is estimated at about US$45 million. IFC would provide a loan for its own account of up to US$15 million.

Location of project and Description of site

The project is located in Araras, State of Sao Paulo. The total project site covers 12.5 ha and is part of an industrial development park.

Description of Company and Purpose of Project
The project consists of the greenfield development of an industrial plant for the production of frozen concentrated orange juice (FCOJ). The Company is a newly formed enterprise for the development of a frozen concentrate orange juice plant. The company will be owned by a group of local orange growers who will supply 100% of the oranges to be processed by the plant under a tolling arrangement. The project will benefit the farmers who are currently obtaining low prices for their oranges due to limited competition among existing orange processors. The project will increase competition in the Brazilian FCOJ industry and allow the farmers to retain the value added from orange processing. IFC will provide long-term financing otherwise available in Brazil. The project will also promote competition in the highly concentrated Brazilian FCOJ industry and provide a guaranteed outlet for over 130 orange growers in the Araras region.

Environmental Category and Issues

This is a category B project according to IFC’s environmental review procedure. The potential environmental, health and safety issues of the project are: air emissions, liquid effluents, solid wastes, fire prevention and emergency response, and workers safety. The new facility will be surrounded by a 45 m green belt planted with ficus and eucalyptus citrodorum. The boiler will use fuel oil, but will be converted to natural gas, when it becomes available. Scrubbers will be installed to ensure that the particulate matter and SO2 emissions will meet local government and World Bank guidelines. The industrial liquid effluents will be chemically and biologically treated. The facility will recycle process water and solid residues. A safety program will be in place to minimize the risk of fires and explosions, and the plant will establish a fire brigade. Employees will be trained with regard to safety rules, accident and spill prevention, fire safety and emergency response, and use of personnel protective equipment.

The is September 6, 1996 from the Public Information Center.
     
Date SPI sent to PIC August 29, 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