Beirut, March 29, 2007 – IFC, the
private sector arm of the World Bank Group, is helping Lebanon’s Indevco
Group go green as the company builds its presence in Egypt. Today, IFC
committed a $26.4 million investment in support of the company’s new $76.8
million tissue paper mill, which will use wastepaper as its primary source
of raw material. At full capacity, the mill will employ 170 people, produce
50,000 tons of tissue paper, and recycle 22,000 tons of wastepaper per
The greenfield mill, called Interstate
Paper Industries, will be built in Sadat City. Slated to begin production
in mid-2008, it will produce goods for export to converters across the
Middle East, Africa, and Europe, boosting the company’s total tissue production
capacity to more than 80,000 tons per year.
The company’s increased demand for
waste paper will also create indirect employment: an estimated 1,000 new
wastepaper collection agents will be needed to gather discarded office
and copy paper, as well as printer trimmings, and deliver these supplies
to the mill. Environmental benefits will include forest preservation and
a reduction in landfill usage estimated at 72,600 cubic meters a year.
The project is not IFC’s first transaction
with Indevco. An earlier IFC investment supported the company’s construction
of a corrugated box manufacturing plant south of Cairo.
“IFC is delighted to provide another
round of financing to a client that is committed to high standards of business
ethics and social responsibility, in a project that creates jobs and expands
Egypt’s recycling market,” said Lars Thunell, head of IFC. “IFC’s financing
will support the company’s export-oriented manufacturing strategy and
will enhance the company’s environmental profile, further reducing its
reliance on virgin pulp.”
“IFC’s investment was crucial for
us to move forward with this exciting tissue mill project, and we are glad
to have IFC as a long-term partner,” said Neemat Frem, President and CEO
of Indevco SAL. “We see this project as complementing our growth strategy
in the region,” he added.
IFC, the private sector arm of the World
Bank Group, promotes open and competitive markets in developing countries.
IFC supports sustainable private sector companies and other partners
in generating productive jobs and delivering basic services, so that people
have opportunities to escape poverty and improve their lives. Through FY06,
IFC Financial Products has committed more than $56 billion in funding for
private sector investments and mobilized an additional $25 billion in syndications
for 3,531 companies in 140 developing countries. IFC Advisory Services
and donor partners have provided more than $1 billion in program support
to build small enterprises, to accelerate private participation in infrastructure,
to improve the business enabling environment, to increase access to finance,
and to strengthen environmental and social sustainability. For more information,
please visit www.ifc.org.