Summary of Proposed Investment
Project Number
8375
Company Name
Leshan Zhen Jing Leather Product Company Limited
Date SPI Disclosed
Dec 8, 1997
Country
China
Industry
Manufacturing
Status
Completed
Sector
Garment and Apparel (Without Fabric , Excluding Footwear)
Department
Regional Industry - MAS Asia & Pac
Environmental Category
B - Limited
Previous Events
Approved : Mar 26, 1998
Signed : Sep 10, 1998
Invested : Jan 26, 1999
Project Description
Summary Of Project Information (SPI)
| Project Name | China-Zhen Jing Leather Products Company, Limited |
| Region | Asia |
| Sector |
Projected Board DateJanuary 15, 1998
Company NameZhen Jing Leather Products Company, Limited
Technical Partner and/or Major Shareholders
The majority (75%)shareholder will be Mr. He Zheng Gang of Leshan, China. FMO of Netherlands will hold a 12.5% share. IFC is considering taking up the remaining 12.5% share.
Project Cost Including proposed IFC investment
US$15 million. IFC financing being considered: US$4.5 million loan; US$2 million in equity.
Location of project and Description of site
Leshan City, Sichuan Province, China. The site for the new garment plant is adjacent to the Company’s existing garment plant located in Shizhong District. The site for the new tannery is adjacent to the Company’s existing tannery located in Wutongqiao District and on the bank of Minjiang River.
Description of Company and Purpose of Project
(include IFC’s Role and Development Impact)
The project company will be a limited liability sino-foreign joint venture incorporated in China. The project is to construct and operate a new cowhide tannery with a total capacity of 300,000 tanned hides per annum and a new bovine leather garment plant with a total capacity of 180,000 pieces per annum. The project will support private sector growth in China and contribute to economic development in the interior regions. IFC’s involvement will help upgrade the Company’s existing operations, improve accounting and management information system, and ensure that adequate attention is paid to environmental protection.
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: proper treatment and disposal of liquid and solid wastes and gaseous emissions, general worker health and safety and fire protection. Using Italian technical assistance trust funds, a basic environmental audit was conducted by ERM-Hong Kong to assess the environmental problems of Zhen Jing’s existing operations and the potential environmental impacts of the expansion project. Based on the audit, an envrionmental protection action plan was finialized by the Company with the help of IFC and in consultation with the Chinese Environmental Protection Bureau. Under this plan, a new waste water treatment plant and a new solid waste disposal site will be built as part of the expansion project. Both the waste water treatment plant and the solid waste disposal site will have capacity to handle waste discharges from both the new and the old tanneries. In addition, an environmental management system will be set up and all the issues identified by the envrionmental audit will be addressed properly conforming to the World Bank guidelines and the Chinese standards.
The is from the Public Information Center.
| Host country location of environmental documents | Environmental Protection Bureau, Leshan City, Sichuan Province, China |
Date SPI sent to PIC December 8, 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) 473-7711
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
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