Beijing, March 14, 2005—
The International Finance Corporation, the private sector arm of the World Bank Group, today announced an agreement to provide $12 million in equity and debt financing to CSRC China Corporation. Funding will be used to modernize and expand its carbon black plant located in Maanshan City, Anhui Province, China. The project supports a company that strives to achieve improved environmental practices.
IFC’s financing includes an equity investment of $1 million and a loan of $11 million. It will help the company expand its production capacity and improve energy efficiency and environmental standards as well as undertake other cost reduction measures. The capacity increase is necessary to meet the growing needs of China’s tire industry, which is the primary consumer of CSRC China’s high quality carbon black products.
CSRC China Corporation was set up in 2000 through an acquisition of existing assets from Maanshan Golden Star Group, a state owned enterprise. It is currently owned by China Synthetic Rubber Corporation, the world’s fourth largest supplier of carbon black. IFC is also a shareholder and has provided $11.0 million in financing for the company’s original project to upgrade and modernize the carbon black plant in 2002.
IFC’s Director of Oil, Gas, Mining and Chemicals, Mr. Rashad Kaldany, said, “This is the second time that IFC has supported CSRC China Corporation. The company has shown a strong commitment to international environmental and social standards. The new financing demonstrates IFC’s long term commitment as a partner and confidence in the company’s prospects.” “CSRC China Corporation promotes high standards to improve performance in areas such as energy efficiency." said IFC Associate Director Karin Finkelston. "This project is a good example of how IFC can be an effective partner for expanding Chinese companies with good practices."
“The company has shown strong performance in the past several years. After expansion, CSRC China Corporation will become one of the largest and most efficient carbon black producers in China with total production capacity of 125,000 tons per year.” said Mr. Lin Sin-Jung, President of CSRC China Corporation. Mr. Lin added “The partnership between China Synthetic Rubber Corporation and IFC has been very successful and we are pleased to see continued support and confidence to the company from IFC.”
The mission of IFC (
www.ifc.org
) 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 FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.
