Summary of Proposed Investment
Project Number
9016
Company Name
Moorim Paper Co., Ltd.
Date SPI Disclosed
Jul 6, 1998
Country
Korea, Republic of
Industry
Agribusiness and Forestry
Status
Completed
Sector
Paper for Printing and Writing
Department
Gbl Ind, Manufact, Agribus & Services
Environmental Category
B - Limited
Previous Events
Approved : Oct 28, 1998
Signed : Oct 29, 1998
Invested : Nov 12, 1998
Project Description
Summary Of Project Information (SPI)
| Project Name | Republic of Korea: Shinmoorim Paper Manufacturing Company, Ltd. |
| Region | Asia |
| Sector |
Projected Board DateAugust 6, 1998
Company NameShinmoorim Paper Manufacturing Company, Ltd. (Shinmoorim, the Company)
Technical Partner and/or Major Shareholders
Shinmoorim is controlled by the Dong Wook Lee family, which owns approximately 50% of the Company. The remainder of the Company is widely held by private and institutional investors.
Project Cost Including proposed IFC investment
Total estimated project cost is KW330,000, or approximately US$235 million.
Location of project and Description of site
The main production facility is located in Chinju, Korea on a 78,000 square meter site, where Shinmoorim established its initial operations in 1978.
Description of Company and Purpose of Project
Shinmoorim is Korea''s second largest coated paper producer. The Company is installing a third paper machine to expand its production from 210,000 to 395,000 metric tons p.a. Civil work for the expansion is nearly complete and equipment has been partially installed. However, as a result of Korea''s recent economic crisis, the Company is unable to secure long-term financing to complete the expansion. In addition, the Company is overleveraged and has significant cross guarantees. IFC proposes to help finance the expansion and to restructure Shinmoorim’s debt and guarantee commitments. IFC would make a substantial equity investment in the Company and seek to mobilize other foreign portfolio investors to make similar equity investments. IFC would also provide some long-term debt.
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 emissions; process and sanitary wastewater treatment; solid waste management; hazardous materials storage and handling; fire protection and emergency response; and general workplace health and safety. Air emissions (principally from a co-generator energy plant) and liquid effluents will be within World Bank Group guidelines; solid waste is recycled or used as fertilizer. Appropriate hazardous waste management and health and safety plans have been developed and the company complies with relevant Korean and World Bank Group guidelines. The site has both ISO 9002 and 14001 certification and senior management has developed an environmental policy statement, which includes provisions for disclosure of environmental information to the public. IFC will monitor ongoing compliance with World Bank Group environmental, health and safety policies and guidelines during the lifetime of the project.
The is from the InfoShop.
| Host country location of environmental documents | Shinmoorim Executive Office, Seoul, Korea, and Shinmoorim Administration Office, Chinju Korea |
Date SPI sent to InfoShop July 6, 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
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).
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