Washington, D.C., November 7, 2003—
The International Finance Corporation, the private sector arm of the World Bank Group, has signed an agreement to provide a $12 million loan to China’s Southern Aluminum Industry Company (SAIC). In addition to creating new jobs, the project will transfer skills and technology and raise the company’s health and safety standards. These improvements will set benchmarks for local industry.
The loan will partially finance the installation of an aluminum hot rolling mill and the refurbishment of SAIC’s existing cold rolling and foil mills. As a result, the company’s production capacity will increase by 300 percent and reach 40,000 tons of aluminum sheet and 10,000 tons of foil per year. The products will be supplied to the transportation, construction, kitchenware and packaging industries.
“This project is an example of IFC’s commitment to Chinese companies that are modernizing, becoming more efficient and setting high standards in environmental, social and governance practices. We are glad to be part of this process,” said Assaad Jabre, IFC Vice President of Operations.
“IFC’s support for SAIC’s modernization and expansion program will enable SAIC to provide its clients with a wider range of high quality aluminum sheet and foil at internationally competitive prices,” said Mr. Alim Satria, managing director of SAIC.
China is the world’s second-largest producer of aluminum and one of the fastest-growing markets for aluminum products. Hot rolling technology will allow SAIC to substantially increase its use of locally produced aluminum ingot for the production of higher-quality aluminum sheet and foil.
The mission of IFC is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY03, IFC has committed more than $37 billion of its own funds and arranged $22 billion in syndications for 2,990 companies in 140 developing countries. IFC's worldwide committed portfolio as of FY03 was $16.8 billion for its own account and $6.6 billion held for participants in loan syndications.
