SAFAL STEEL INVESTMENTS (S & E AFRICA)

The project concerns the installation of a new steel coating facility comprising cold rolling, aluminium-zinc coating and colour coating plants in South Africa, installation of new facilities to complete or to expand similar existing facilities in Kenya and Tanzania and installation of several metal roofing sales and service centres in other countries in the region.

The promoter's subsidiaries are leading suppliers of metal roofing products for Africa, which are mainly produced in the existing plant in Kenya. Although a new dual coating line was co-financed by the Bank a few years ago for this purpose, its capacity has reached saturation and can no longer meet continuously rising demands. Against this background, a credit line is also sought for financing small-scale improvements at other group locations in Africa. Consequently, this project forms a crucial part of the promoter's strategy for safeguarding the market position.

The production of steel sheets is listed in Annex II of the EIA Directive 97/11. Operations under this project concern essentially non-polluting activities. No environmental problems are expected from this project. The due diligence procedure will check compliance with applicable environmental regulations of plant and operations, including verification if an environmental project evaluation was required to obtain construction and operations permits and if such evaluation included an Environmental Impact Assessment Study.

The promoter is a private company operating in the manufacturing sector not covered by EU Directives on procurement. The promoter carries out competitive enquiries among potential suppliers for goods and services, as is usual in the industry.

Manufacturing