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
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.