Release date: 20 March 2007
Promoter – Financial Intermediary
Safal Investments (Mauritius) LimitedAtt: N.R. Narayanan, CFO
Location
Description
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.
Objectives
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.
Comments
Manufacturing
Sector(s)
Proposed EIB finance (Approximate amount)
Up to EUR 40 million.
Total cost (Approximate amount)
Estimated by the promoter to be EUR 131 million.
Environmental aspects
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.
Procurement
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.
Status
Signed - 7/05/2008
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).