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GZ Industries Limited.

Region : Sub-Saharan Africa

Sector : M-AF - Other Miscellaneous Fabricated Metal Products (Including Non-Wood Housing Products, Tanks, Cutlery, Kitchen Utensils and Handtools, etc.)

Department : Gbl Ind, Manufact, Agribus & Services

Environmental category : B

Date SPI disclosed : November 4, 2015

Projected board date : December 7, 2015

Project Description : The project involves the acquisition of the container glass, plastic crate and crown manufacturing operations of Frigoglass SAIC in Nigeria and United Arab Emirates, and the construction of two greenfield aluminum beverage can manufacturing plants in Kenya and South Africa.

Project Sponsor and Major Shareholders of Project Company :

The sponsors are Standard Chartered Private Equity, an international private equity fund, and Verod Industries Limited, a Nigerian investment company.

Total Project Cost and Amount and Nature of IFC's Investment :

The total project cost is estimated at US$360 million.

The proposed IFC investment is equity of up to US$80 million.

Location of Project and Description of Site :

The company s two existing beverage can manufacturing plants are located in Agbara, Ogun State, and in Aba, Abia State, Nigeria. The three glass plants are located in Agbara, and Ughelli, Delta State, and in Jebel Ali, Dubai. The greenfield can plant in Kenya will be located at the 80 km peg on the Nairobi to Mombasa highway, and the plant in South Africa, in Johannesburg.

Expected Development Impact :

Creation of job opportunities: The Project will create 220 direct permanent jobs for Kenyan, South African and Nigerian nationals and more indirect jobs in the local supply chains in various sectors including logistics and transportation, maintenance and other support services.

Import substitution: The Project will replace imported beverage cans with locally produced product in Kenya, which currently imports all can requirements, saving foreign exchange. Kenya will earn additional foreign exchange from the export of cans to other East African countries.

Develop local manufacturing: The Project will create the first can manufacturing plant in East Africa, helping to develop the local manufacturing industry and transfer knowledge of can manufacturing among the local population.

South-South investment promotion: The Project will help promote South-South investments through IFC s support to a Nigerian company to facilitate its expansion to Kenya and South Africa.

IFC's Expected Role and Additionality :

(i) Long-term financing: IFC will provide substantial equity financing which is not readily available locally.

(ii) Mobilization: IFC will mobilize additional equity financing from Africa, Latin America and Caribbean Fund to complete the equity financing plan.

(iii) Environmental and Safety guidance: IFC will provide guidance to enable the Project to implement international standard environmental and safety procedures.

(iv) Support to South-South

Project completion date : 2017-12-31 12:00:00

Major organization : GZ INDUSTRIES LIMITED

Address : Area 5, Iperin Gate,

OPIC Estate, Along Agbara-Otta Road,

Agbara, Ogun State

Country :Nigeria

Email : Gary.Shatwell@Gzican.com

Url : http://www.gzican.com/

Financier : World Bank (WB),

Financier address : WORLD BANK (WB)

InfoShop at 701 18th Street N.W.,

Washington, D.C.,

USA

Website : http://www.worldbank.org/

Tel: (202) 473-1000

Fax: (202) 477-6391

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Publication:Mena Report
Geographic Code:6SOUT
Date:Nov 6, 2015
Words:506
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