Summary of Proposed Investment
Project Number
9174
Company Name
Maximilano Gaidzinski S.A. - Industria de Azulejos Eliane
Date SPI Disclosed
Oct 2, 1998
Country
Brazil
Industry
Manufacturing
Status
Completed
Sector
Pottery, Ceramic, and Plumbing Fixtures (Including Kitchenware)
Department
Regional Industry MAS LAC & EUR
Environmental Category
B - Limited
Previous Events
Approved : May 25, 1999
Signed : Jul 12, 1999
Invested : Feb 17, 2000
Project Description
Summary Of Project Information (SPI)
| Project Name | Brazil-Eliane |
| Region | Latin America and the Caribbean |
| Sector |
Projected Board DateNovember 6, 1998
Company NameMaximiliano Gaidzinski S.A. Industria de Azulejos Eliane
Technical Partner and/or Major Shareholders
Maximiliano Gaidzinski S/A - Industria De Azulejos Eliane ("Eliane") was established by Maximiliano Gaidzinski in 1962 in Cocal do Sul in the state of Santa Catarina, Brazil. The Company is presentlty owned and controlled by the founder''s wife, his children and their spouses. However, none of these individuals is directly involved in the management of the Company, which is fully professional.
Project Cost Including proposed IFC investment
Total project cost is estimated at US$120 million. IFC is considering a total investment of US$45 million including a loan of US$30 million and an equity subscription of US$15 million, both for its own account.
Location of project and Description of site
The proposed project will be carried out at Eliane’s existing plants in Cocal do Sul and Criciuma in the state of Santa Catarina and in Salvador in the northeastern state of Bahia.
Description of Company and Purpose of Project
Eliane is a medium-sized, family-owned company that has become the leading manufacturer of ceramic tiles in Brazil with 1997 net sales of US$194 million. The Company produces ceramic wall and floor tiles and, in 1996, introduced a new porcelain tile (“porcellanato”) technology, the first of its kind in Brazil. Eliane’s major focus has traditionally been on the domestic market, which represents 84% of the Company’s revenues. Exports (mainly to the U.S., Canada, Argentina, Chile, Bolivia and Paraguay) account for the remaining 16% but are expected to increase over the coming years. The proposed project has two elements: modernization and expansion of existing plants (US$40 million) and financial restructuring to reduce the Company''s high level of financial expenses (US$80 million).
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: liquid effluent and air emissions from the kiln, control of employee exposure to heat, dust, noise, and aerosol from pigmentation and glazing operations. The Company will implement a Corrective Action Plan to upgrade the environmental conditions of its operations and ensure they comply with World Bank guidelines. The CAP includes air emissions controls, installation of wastewater treatment facilities at several plants, follow-up of the existing health and safety programs and adequate handling of solid residues. IFC concludes that, with the implementation of the CAP, the proposed project is being designed to meet Government of Brazil requirements, and World Bank policies, and environmental, health and safety guidelines
The is from the InfoShop.
| Date SPI sent to InfoShop | October 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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