Sadia II Project Summary Of Project Information (SPI)       Project Name    Brazil - Sadia            Region    Latin America        Sector       Project No007568   Projected Board DateNovember 22, 1996   Company NameSadia Concórdia S.A. Indústria e Comércio   Technical Partner and/or Major Shareholders    	Sadias shares are publicly listed in the Sao Paulo and Rio de Janeiro Stock Exchanges.  The majority shareholder is the Fontana family with 38% of the outstanding shares and 66% of the voting shares; an additional 10% of the voting shares is held by the Companys employee welfare foundation.  The balance of the outstanding shares is held by a number of smaller shareholders (9%), institutional investors (31%) and foreign investors (17%), including IFC (1.41% shareholding from a previous investment).    Project Cost Including proposed IFC investment    	Project Cost: US$ 505 million.  Proposed IFC investment: US$ 40 million, including a US$ 30 million A loan and a US$ 10 million C loan (quasi-equity).  Proposed syndication: US$ 160 million for the account of a special purpose trust which will issue Asset-Backed Trust Certificates to be placed with institutional investors.    Location of project and Description of site    	Production and distribution facilities to be modernized and expanded are located in the states of Rio Grande do Sul, Santa Catarina, Parana, Sao Paulo, Rio de Janeiro, Mato Grosso do Sul and Mato Grosso.    Description of Company and Purpose of Project    	Sadia Concórdia S.A. Indústria e Comércio is undertaking a five year, US$505 million investment program aimed at expanding and modernizing production and distribution capacities to allow the Company to meet market expansion plans and maintain its leadership position.    	Sadia is Brazils leading company in slaughtering, processing and packaging of poultry, pork and beef products as well as a producer of soybean meal and oil, animal feed, refined oil and margarine.  The Company sells and distributes commodity and branded products in the domestic and export markets.  It operates 18 plants throughout south-central Brazil with 20 regional sales units covering 150,000 customers.  The Company is integrated with over 6,000 poultry and 8,500 pork farmers who provide it with consistent quality raw material.  The 1996-2000 Project includes: (i) increasing production of value added processed products; (ii) expanding poultry and pork slaughtering capacity by 33% and meat processing capacity by 45%; (iii) modernizing and rationalizing slaughtering and meat processing operations to improve efficiencies and lower production costs; (iv) expanding sales and distribution facilities; and (v) increasing soybean crushing and animal feed production capacities to ensure adequate feed supply to its outgrowers.  Sadias investment program will improve its international competitiveness as a meat processor and food exporter, providing 5,000 additional jobs at its plants and integrating 650 additional pork and poultry farmers in mostly rural areas.    Environmental Category and Issues    	This is an environmental review category B project.  Environmental, health and safety issues include air emissions, liquid effluent treatment and discharge, solid waste disposal, fire and dust explosion prevention, use of personal protective gear, and general employee health and safety.  Environmental reports submitted by Sadia indicate that operations are not in full compliance with the World Bank guidelines.  IFC has therefore required that, as a condition of first disbursement, Sadia submit a Corrective Action Plan (CAP) acceptable to IFC.  This CAP will identify the specific actions required, together with an estimate of the costs involved, to bring all operations in compliance with World Bank policies and guidelines.  Sadia has committed to bring all operations into full compliance with World Bank guidelines.    The Environmental Review Summary is expected to be available on October 18, 1996 from the Public Information Center.       Date SPI sent to PIC     October 18, 1996      For Additional Information contact:  Corporate Relations Unit -   telephone: (202) 473-7711   facsimile: (202) 676-0365  Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).