Summary of Proposed Investment
Project Number
9077
Company Name
Iljin Electric Co., Ltd.
Date SPI Disclosed
Aug 26, 1998
Country
Korea, Republic of
Industry
Manufacturing
Status
Completed
Sector
Electrical Machinery, Equipment and Components (Electric Lighting, Motors, Batteries, Insulated Wires and Cables, Fiber Optic Cable, Carbon and Graphite Products, etc.)
Department
Regional Industry - MAS Asia & Pac
Environmental Category
B - Limited
Previous Events
Approved : Jun 4, 1999
Signed : Jun 10, 1999
Invested : Jul 8, 1999
Project Description
Summary Of Project Information (SPI)
| Project Name | Korea-ILJIN Industries Co., Ltd. |
| Region | East Asia and the Pacific |
| Sector |
Projected Board DateSeptember 30, 1998
Company NameILJIN Industries Co., Ltd.
Technical Partner and/or Major Shareholders
The Company was established and is owned 71.4% by Mr. Huh, chairman, remaining shareholders consist of 28.6% by ILJIN Group companies: ILJIN Corporation (11.4%) and ILJIN Electric (17.2%). ILJIN Industries is not listed on the Korea Stock Exchange. The Company was founded in 1996 and manufacturers power cables for Korea Electric Power Corporation (KEPCO), industrial use, and exports.
Project Cost Including proposed IFC investment
The proposed project cost is US$37 million. It consists of two parts: financial restructuring of US$22 million, and new capital expenditures of US$15 million. Total proposed IFC funding is US$20 million, which will be a combination of A-Loan and equity. IFC B-Loan is currently being contemplated for US$10 million. The Company and the ILJIN Group (Mr. Huh) has a plan to contribute US$7 million.
Location of project and Description of site
The Company''s headquarters and plant is located in Hwasung-gun, Kyunggi-do, about 30 kilometers from Seoul. The total land available is 67,252m2 and the total factory covered area is 27,156m2. The new capital expenditures will install a vertical type vulcanizing (VCV) line in the existing plant.
Description of Company and Purpose of Project
The Company manufactures various types of power cables: extra high voltage (EHV), high voltage, and medium voltage. Cables are used for transmission and distribution of electricity. The largest purchaser is KEPCO. The Company currently has one VCV and one catenary vulcanizing line (CCV) and plans to install the second VCV line in view of growing domestic demand in EHV cable.
IFC will play an essential role in assisting the Korean manufacturer to produce value-added power cables to meet domestic demand. The Company is internationally competitive and has technical assistance contracts with leading cable manufacturers from Japan and Switzerland. Its world class production facility achieves competitive productivity.
Environmental Category and Issues
This is an environmental review category B project. The project involves the expansion of facilities within the existing site boundary and no additional land is required. Air emissions from this facility will be negligible, light oil for boilers is stored in an underground tank connected directly to the boilers, and emissions of particulate matter, sulfur dioxide and nitrous oxides will fall within World Bank Group guidelines. No process effluents are generated by the plant and sanitary effluent is treated before discharging to the public sewer. There are existing systems for the use, storage and disposal of solvents and hazardous wastes, and material handling is undertaken in a rational and planned manner. The majority of solid waste (PVC, polyethylene, copper, aluminum and domestic waste) is recycled by professional companies under contract to the sponsor. There is a committee for Health and Safety which meets on a regular basis with direct links to senior management. The facility has an environmental policy statement which has been endorsed by senior management and suitably qualified environmental supervisors have been appointed to monitor environment and health and safety issues relating to the site.
The is from the InfoShop.
| Date SPI sent to InfoShop | August 26, 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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