PROJECT

Projects

Summary of Proposed Investment

Project Number

9039

Company Name

Wiest S/A.

Date SPI Disclosed

Jun 15, 1998

Country

Brazil

Industry

Manufacturing

Status

Completed

Sector

Motor Vehicle Parts

Department

Regional Industry MAS LAC & EUR

Environmental Category

B - Limited

Previous Events

Approved : Feb 22, 1999
Signed : Jun 11, 1999
Invested : Aug 27, 1999

Project Description

Summary Of Project Information (SPI)

Project NameBrazil-Wiest S.A.
     
RegionLatin America and Caribbean
Sector
Project No009039
Projected Board DateJuly 20,1998
Company NameWiest S.A.
Technical Partner and/or Major Shareholders

The Company is controlled by the Wiest family which owns 66% of the voting shares and 32% of total capital. Mr. Ademar Furtado, a senior manager with the Company, owns 16.5% of the voting shares and 8.15% of the total capital and the family of Mr. Alfeu Garcia owns another 16.5% of the voting shares and 7.5% of the total capital. The balance of the capital is held by institutional investors and traded on the Bovespa stock exchange.

     

Project Cost Including proposed IFC investment

The total project cost is estimated at US$52 million. IFC is considering a total investment of US$22 million including an "A " Loan of US$12 million and an equity investment of up to US$10 million, both for its own account.

Location of project and Description of site

The proposed project will be carried out as follows: an expansion and modernization of the Company''s industrial complexes in Joinville and Jaraguá do Sul, Santa Catarina state, and Guarulhos, São Paulo state; a new production facility in an industrial park in Recife, Pernambuco state; and an expansion of the Midas franchise.

     

Description of Company and Purpose of Project

Wiest S.A. (“Wiest”, the “Company”) is a leading producer of automotive exhaust systems for the Brazilian aftermarket. The Company is also a significant producer of steel pipes and tubes for the autoparts, furniture and other manufacturing industries; and recently acquired the Master Franchise for Midas stores in Brazil. Exhaust systems and components (46%) and tubes and pipes (54%) accounted for the company’s 1997 sales of US$52 million. The proposed three-year (1999-2001) modernization and expansion program consists of: (i) an expansion and modernization of its plant in Jaraguá do Sul; (ii) a new plant in Recife to assemble exhaust system components for the aftermarket in northern Brazil; (iii) an expansion of the Midas franchise for under-the-car services from 5 stores to 29; and (iv) modernization of steel pipes production at the plant in Joinville and at Intraferro, a tube and autoparts plant in São Paulo. The project will enable the company to (i) meet growing demand for exhaust system components; (ii) maintain its leading position by improving quality and efficiency while securing a foothold in the OEM market; (iii) develop the Midas franchise; and, (iv) provide better services through better location in relation to its markets. In addition to providing equity and long-term financing which is not easily available to second-tier companies in Brazil, IFC will also advise the Company on corporate governance issues and environmental management.

     

Environmental Category and Issues

This is an environmental review category B project. Environmental, occupational health and safety issues associated with this project include site selection for new facilities, air emissions, liquid effluents, solid and hazardous waste treatment and disposal, oil/fuel storage and spill prevention, disposal and recycling of used fluids and oils, workers safety and training, and fire prevention and protection.

Environmental protection and worker health and safety are a priority of the company’s senior management. Wiest’s existing facilities are in substantial compliance with World Bank guidelines, and the company is upgrading procedures and facilities at its recently acquired plant in São Paulo. The new plant in Recife will be in leased space, and the company has a detailed site selection process for expansion of the Midas chain. The company has, or is implementing, programs for emissions and effluent control, and waste management at each of its plants.
     
The is from the InfoShop.

Host country location of environmental documentsWiest S.A., Rua Ararangua, 397 - America CEP 89 204-310, Joinville - SC - Brazil

Date SPI sent to InfoShop      June 15, 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).

Sponsor / Cost / Location