Announcement of IFC Assists Cameroon Industry One Hundred Twenty Million US Dollars Aluminium Project on June 6, 1979

• International Finance Corporation 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. 202-477-1234 IFC Press Release No. 79/33 Wednesday, June 6, 1979 IFC Assists Ca~eroon Industry $120 Million A~... :J11inum Project The leading industrial enterprise in Cameroon, Alucam-Compagnie Camerounaise de !'Aluminium, is undertaking a $120 million project to increase its aluminum smelting operations approximately 50 percent to some 80,000 metric tons a year. Cameroon, French and Belgian sources, Caisse Centrale de Cooperation Economique, the European Investment Bank (EIB) and the Interntional Finance Corporation (IFC), an affiliate of the World Bank, are financing the expansion. The project will increase Cameroon's exports, contribute to its balance of payments and, through its affiliated rolling mill and fabricating operations, assist the • growth of the domestic aluminum fabricating industry and further integrate Alucam into the country's economy. Term financing of $100 million is being provided by the Caisse Centrale, EIB, Cameroon banks, French banks, suppliers' credits guaranteed by Compagnie Francaise pour !'Assurance du Commerce Exterieur, and IFC, which is lending $7 million. A further $19.1 million will come from cash generation and new equity invest- ments by present shareholders, including the Cameroon Government, the Pechiney Ugine Kuhlmann Group of France, the .Paribas Group of France, and S.A. de Traction et d'Electricite of Belgium. IFC is joining the shareholders with a $900,000 equity investment. The technical sponsor, Pechiney Ugine Kuhlmann, is a leading European organ- ization in the metals and chemicals industries and is one of the six major inter- national aluminum producers which, together, account for more than half of world capacity. Over a period of years, Alucam has progressively become more integrated into the country's economy. This includes a greater Cameroon equity holding, more Cameroonians in management, and increased country profits and tax revenues. The • expansion is expected to accelerate this process. The Company produces slabs and ingots. output is exported. Currently, about one-third of the The rest is sold to Alucam's local rolling mill affiliate,  - 2 - Societe Camerounaise pour la Transformation de !'Aluminium (Socatral). in turn, exports half of its production. ware, mainly for the domestic market. Socatral, Another affiliate manufactures hollow- The increased aluminum smelting capacity • will provide the basis for further expansion of the domestic aluminum fabricating industry. Alucam's substantial electric power needs have enabled Cameroon to expand generating capabilities in the large, economical units required by hydropower. This has resulted in significant economies of scale for other power consumers who benefit from reduced costs. The Company's use of alumina produced in Guinea as a raw material and its exports of intermediate and finished products to neighboring countries result in a substantial regional impact as well. • (Any inquiries strictly relating to IFC's participation in this project should be directed to the IFC Information Office, 1818 H Street, N.W., Washington, D.C. 20433, Telephone (202) 477-2032.) •