Summary of Proposed Investment
Project Number
8974
Company Name
Vulcabrás Azaléia CE, Calçados e Artigos Esportivos S/A.
Date SPI Disclosed
Apr 29, 1998
Country
Brazil
Industry
Manufacturing
Status
Completed
Sector
Shoes and Leather Products
Department
Regional Industry MAS LAC & EUR
Environmental Category
B - Limited
Previous Events
Approved : Dec 14, 1998
Signed : Feb 28, 1999
Invested : Apr 21, 1999
Project Description
Summary Of Project Information (SPI)
| Project Name | Brazil-Federative Republic of Brazil, Vulcabras do Nordeste S.A. |
| Region | Latin America & Caribbean |
| Sector |
Projected Board DateJuly 1, 1998
Company NameVulcabras do Nordeste S.A.
Technical Partner and/or Major Shareholders
The company is controlled by the Grendene Group, a large Brazilian industrial group with interests in furniture making, shoe manufacturing, cattle raising and production of industrial alcohol. Vulcabras obtains technical assistance for shoe production from the licensors as well as from Grendene S.A.
Project Cost Including proposed IFC investment
Project cost is estimated at US$56 million, including working capital. IFC proposes to provide a senior loan of US$15 million and a convertible subordinated loan in the amount of US$5 million.
Location of project and Description of site
The shoe factory is located in Horizonte, a town of 20,000 inhabitants located some 50 miles outside of Fortaleza, Ceara State.
Description of Company and Purpose of Project
Shoes produced by Vulcabras will be sold on the Brazilian market and exported within Mercosul. The company will create jobs for 1,800 skilled workers which it will train on the job. The investment will be made in the Northeast region of Brazil, an area with high unemployment and low income levels. Development of the Northeast states of Brazil is a high priority of the government.
Environmental Category and Issues
This is an environmental review category B project. Environmental, social, occupational health and safety issues include: site history and land use, social impacts, air emissions, effluent treatment and discharge, solid and hazardous waste management, hazardous materials handling and storage, fire prevention and emergency response, and workplace health and safety. Effluent treatment and disposal, and air emissions will be appropriately controlled. Workers are provided with personal protective equipment such as hearing protection and steel-toe shoes. Production by-products are recycled or sold to converters. The company maintains high standards for fire prevention and emergency response, and workplace health and safety.
The is May 1, 1998 from the Public Information Center.
| Host country location of environmental documents | Vulcabras do Nordeste, S.A. Horizonte, Ceara, Brazil |
Date SPI sent to PIC April 29, 1998
“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
L:\SPI\SP8974.DOC
April 29, 1998 12:57 PM
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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