Summary of Proposed Investment
Project Number
9951
Company Name
ITP Ingeniería y Fabricación, S.A. de C.V.
Date SPI Disclosed
Mar 22, 2000
Country
Mexico
Industry
Manufacturing
Status
Completed
Sector
Aerospace Product and Parts
Department
Regional Industry MAS LAC & EUR
Environmental Category
B - Limited
Previous Events
Approved : Jun 19, 2000
Signed : Jun 30, 2000
Invested : Jul 19, 2000
Project Description
Summary Of Project Information (SPI)
| Project Name | Mexico - Turborreactores |
RegionLatin America and the Caribbean
Sector
Project No009951
Projected Board DateMay 1, 2000
Company NameTurborreactores S.A. de C.V.
Technical Partner and/or Major Shareholders
The joint shareholders of Turborreactores S.A. de C.V. are Industria de Turbopropulsores S.A. (ITP); Cintra S.A. de C.V. (Cintra); GE Mexico S.A. de C.V. (GE Mexico); and Pratt and Whitney (P&W). ITP, a Spanish company whose shareholders include Rolls Royce, operates a large overhaul and repair facility of aeronautical engines, and its other activities include research, design, development and manufacturing of components for turbines with aeronautical, naval and industrial applications. Cintra is the holding company for the major Mexican airlines. GE Mexico is a subsidiary of General Electric Corporation whose activities include, among others, aeronautical engine manufacture and repair, etc. P&W, with a 3% share in Turborreactores, is a unit of United Technologies Corporation, and is a leader in the design, manufacture and support of engines for commercial, military and general aviation aircraft, and space propulsion systems.
ITP as the majority shareholder is the technical partner and is also responsible for the day-to-day operations of Turborreactores.
Project Cost Including proposed IFC investment
The project cost is estimated at US$46 million and the proposed IFC investment consists of an A loan of US$14 million (for IFC''s own account) and a B loan of up to US$4 million (for the account of participants).
Location of project and Description of site
The project is based in Queretaro, 135 miles north of Mexico city. The plant is located in the Benito Juárez Industrial Zone, in the city of Querétaro and the facilities are situated on a terrain of 15.67 hectares of which only 7.18 hectares have been developed.
Description of Company and Purpose of Project
Turborreactores is Mexico’s sole service provider, and one of only two such plants in Latin America, for the overhaul and repairs of aeronautical jet engines. The proposed project consists of: (i) rehabilitation and upgrading of the current facilities to enhance the plant’s efficiency; (ii) expanding the range of engine repair capability to access a larger market; and (iii) working capital requirements to support the operations.
The project assists the country to diversify from its current export oriented manufacturing base into the high-tech service sector. The project would lead to a more balanced regional development in Mexico by diversifying from the automotive sector in the northern states, to a high-tech industry in a new part of the country. The project is designed to improve the company''s long-term competitiveness and depends critically upon long-term financing which is currently not available locally. The proposed project will contribute toward several developmental impact objectives. First, the project will encourage strong local private sector participation by promoting a healthy local enterprise in the overhaul and repair of aeronautical jet engines sector, a high tech industry in which Mexico has a natural market. Assisting an export-oriented project will also contribute to an increase in Mexico’s foreign exchange earnings. ITR in collaboration with local educational institutions and technical institutions is providing vocational and professional courses to high school students in Querétaro and its commitment to the education and training of its workforce will help attract skilled and educated labor to the region contributing to its overall development.
Environmental Category and Issues
This is a category B project according to IFC''s environmental and social review procedure. Environmental and social issues reviewed included: site location, air emissions, liquid effluent handling, treatment and discharge, solid waste handling and disposal, fuel and hazardous materials storage and handling, noise, contingency and emergency and response plans, and employee training and general health and safety. Turborreactores'' facility is located in an industrial park in the city of Queretaro. The site is not located near sensitive habitats and no resettlement nor economic displacement has occurred as a result of the project. Turborreactores is in the process of implementing an upgrading program at their wastewater treatment facility. Hazardous waste is collected and treated by an entity authorized by the environmental authorities of Mexico. Turborreactores is in the process of preparing a noise study within the plant as well as the perimeter of the facility. Turborreactores has prepared emergency, contingency and response plans in the event of fire, explosions, gas leaks, etc. In addition, a fire prevention program including a fire emergency response program, and a fire brigade have been established.
The is March 31, 2000 from the InfoShop.
| Host country location of environmental documents | Turborreactores, Acceso IV, No. 3 Fracc. Ind. Benito Juarez 76120, Santiago de Queretaro, Queretaro, Mexico. |
Date SPI sent to InfoShop March 22, 2000
“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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