Announcement of IFC invests in Assam Sillimanite Limited in India on June 30, 1960

PRESS RELEASE NO. L1 SUBJECT~ IFC invests in FOR RELEASE \) Assam Sillimanite, Ltd. A. M. Newspapers in India Thursday, June JO, 19,60 , Robert L. Garner, President of the International Finance Corporation (IFC), o!nnounced tod~r an investment of $1,365,000 in Assam Sillimanite, Ltd., an Indian company, for expansion of operations to manufacture high-grade re- fractory bricks and shapes. Assam Sillimanite, incorporated in 19.51, has been engaged Y1 m,ining and • 8~ - processing for"export sillimanite, magnesite and kyanite -- minerals used in high-temperature furnaces employed by the steel, glass md ceramics industries. The company, whose Chainnan is s. M. Wahi, works valuable deposits of some of these minerals in India. The IFC investment will help finance a plant designed to produce 46,000 tons annually of refractory materials. India imported more than 120,000 tons of refractories in 19 57. Production by the new plant will fill some of th$ basic needs of India's growing industries for high-temperature furnace? materials. All raw materials are locally available. I It is estimated t.hat the ftirst two years of full operation will provide net annual foreign exchange savings to India equal to IFC•s dollar investment. The plant site is located at Ramgarh in Bihar State about 2.50 miles north- west of Calcutta. It is near the center of an area of rapidly-increasing in- • dustrialization. Steel plants, foundries, glass and cement,.factories and other industries are linked by an extensive system of roads and railways. The new  - . 2 ,plant will provide an employment opportunity to about .560 workers, including 50 skilled and about J.5 technical and man~Jrial employees. • The new plant is esti~a.ted _to cost $3, 2,.55, 000. The construction will be financed in two stages. tor the first stage additional stock will be offered to the present st9ckholders and to the public. The s'e.cond stage is expected to be financed out of retained earnings plus the sale oi' an ad- ditional issue of ·stock. · The IFC investment of $1 1 36.5,ooo will be in U~S. dollar notes bearing interest at 6!%, payable in dollars, and maturing between 196.5 - ·1974. In addition-, ·IFC will participate in profits and receive an option on shares, ,mich are quoted on the Calcutta Stock Exchange. • •