Summary of Proposed Investment
Project Number
9075
Company Name
CHANG DAE INDUSTRY
Date SPI Disclosed
Jul 2, 1998
Country
Korea, Republic of
Industry
Manufacturing
Status
Completed
Sector
Other (Copper, Rolled Copper, Brass, etc.)
Department
Regional Industry - MAS Asia & Pac
Environmental Category
B - Limited
Previous Events
Approved : Nov 9, 1998
Signed : Nov 13, 1998
Invested : Dec 1, 1998
Project Description
Summary Of Project Information (SPI)
| Project Name | Korea: Dae Chang Industrial Co. Ltd. |
| Region | Asia |
| Sector |
Projected Board DateAugust 1, 1998
Company NameDae Chang Industrial Co. Ltd.
Technical Partner and/or Major Shareholders
Mr. Si Young Cho, a Korean entrepreneur, and family members own 28% of the Company.
Project Cost Including proposed IFC investment
Project cost is US$52 million, including proposed IFC investment of US$21 million.
Location of project and Description of site
Shihwa Industrial Estate, a government-sponsored industrial complex, approximately 50km. from Seoul City.
Description of Company and Purpose of Project
The Company, with a production capacity of 90,000 tons per annum, is the largest producer of extruded brass and copper alloy products (using recycled non-ferrous metal scraps)in Korea.
The project is a financial and operational restructuring of the Company to: (i) meet increased working capital needs imposed by Korea''s economic crisis, (ii) discontinue extensive use of promissory notes at high cost to finance working capital, (iii) meet obligation to redeem convertible bonds in January 1999, (iv) consolidate procurement and distribution functions into one organization, and (v) reduce overall debt-to-equity ratio. IFC''s role is to provide long-term funds which are otherwise not available on reasonable terms. IFC would also help catalyze renewed investor confidence in Korea by investing in and facilitating the restructuring of a local Company with strong commercial potential but currently facing difficulties directly related to the economic crisis.
Environmental Category and Issues
Category B. Issues of potential concern are: (i) air emissions, (ii) wastewater treatment and disposal, (iii) hazardous and solid waste management, (iv) hazardous materials storage and handling, (v) fire protection and emergency response, (vi) environmental management systems, and (vii) general worker health and safety. Environmental standards and risk management measures meet World Bank guidelines.
The is from the InfoShop.
| Host country location of environmental documents | Company premises. |
Date SPI sent to InfoShop July 2, 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
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