Beijing, May 16, 2006
— The International Finance Corporation, the private sector arm of the World Bank Group, today signed a $50 million loan agreement with Shanshui Group, the largest cement producer in Shandong Province. IFC’s investment will assist SSG in debt restructuring and provide for the installation of energy efficient technology.
The loans to two separate subsidiaries of the company will form part of SSG’s debt restructuring and capital investment program over the next two years. The program will deliver environmental efficiency via the installation of five energy efficient waste heat recovery systems, and reduced levels of pollution as a result of improved modern technology.
“IFC aims to support local companies that are strong players in their respective regions,” said IFC Executive Vice President Lars Thunell. “Shanshui Group’s investment in environmentally friendly technology should serve as a model for other companies in key industrial sectors across China as they strive to achieve international standards”, said Thunell.
IFC’s loan follows a $7.7 million equity investment it made in SSG in 2005. SSG is one of China’s leading cement companies and is firmly committed to energy efficiency and environmental friendliness. The company meets the World Bank Group limits for particulate emissions at all plants, and SSG has committed to seeking ISO (International Organization for Standardization) 14001 certification for all existing facilities within the next three years.
“As one of the leaders in China’s cement sector, SSG strives to be stronger and more competitive, and we welcome IFC’s financial package and technical advice as we raise the level of our operations,” said Mr. Zhang Caikui, Chairman and General Manager of Shanshui Group. “We hope this will be a long and productive partnership.”
About SSG
SSG is the leading cement producer in Shandong Province, and one of the largest cement producers in China. SSG has its headquarters in Jinan, the capital of Shandong, and has an annual capacity of more than 20 million tons of cement per year. It employs modern, energy-efficient technology in its many clinker and cement facilities around Shandong. In recent years, SSG has successfully implemented a rapid expansion strategy, as well as attracted financing from international investors, making it well-positioned to take advantage of the expected up-swing in the Chinese cement sector in the coming years.
About IFC
IFC promotes sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. Its 178 member countries provide its share capital and collectively determine its policies. From its founding in 1956 through FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications.
