Duratex S.A. (II) Summary Of Project Information (SPI)       Project Name    Brazil-Duratex S.A. II (Duratex)            Region    Latin America and Caribbean        Sector       Project No007333   Projected Board DateMarch 28, 1996   Company NameDuratex S.A. (Duratex)   Technical Partner and/or Major Shareholders    	Duratex S.A. is a publicly traded company with 3.1 billion common shares and 6.2 billion preferred shares.  Itaúsa, the controlling shareholder, owns 78.4% of the voting shares and 21.5% of the preferred shares.  The public holds the remaining 21.6% of the voting shares and 78.5% of the preferred shares.  Itaúsa, a prominent Brazilian group has interests in the financial (Banco Itaú), insurance (Itaú Seguros), building materials (Duratex), chemicals (Elekeiroz), and electronics (Philco Itautec) sectors.    Project Cost Including proposed IFC investment    	Approximately US$305 million three-year investment program with an IFC investment of about US$80 million, of which US$30 million is for IFCs own account and US$50 million is for the account of participant banks.    Location of project and Description of site    	The head office is located in São Paulo in Brazil.  It has ten existing industrial units in Brazil(two hardboard plants located in Botucatu and Jundiaí in the state of São Paulo, three particleboard plants located in Itapetininga, Gravataí and Agudos (the latter will be the site of the greenfield medium density fiberboard plant) in the state of São Paulo, two brass fixtures plants in São Paulo and Jundiaí in the state of São Paulo, and two vitreous china plants, one in Jundiaí in the state of São Paulo and one in São Leopoldo in the state of Rio Grande do Sul) one hardboard plant in Germany and one brass fixtures plant in Argentina (which will also be the site of the new vitreous china operations).  The Company has 188,000 planted acres of pine and eucalyptus forest reserves in the states of Sao Paulo, Rio Grande do Sul and Bahia.  Its total area with forests and native vegetation is 267,000 acres.    Description of Company and Purpose of Project    	Duratex S.A., formed in 1951, is a leading wood-based panel producer in Brazil with a particle board nominal capacity of 340 thousand m3 per year and a hardboard nominal capacity of 370 thousand m3 per year.  Duratex is also a leading producer of brass bathroom fixtures and vitreous china products.  The purpose of the investment program is threefold:  (a) the establishment of Brazils first medium density fiberboard plant will allow Duratex to meet Brazils growing demand of wood products for furniture, civil construction and other applications using plantation-based, fast-growing wood products in place of non-plantation, environmentally sensitive wood products; (b) the modernization and debottlenecking investments in the existing vitreous china, brass fixtures, particleboard, hardboard and forestry operations will allow the Company to maintain its competitiveness in these areas; and (c) the expansion of the vitreous china, brass fixtures and particle board operations will allow the Company to maintain market share given the expected growth conditions for these sectors.    Environmental Category and Issues    	This is a category B project according to IFCs environmental review procedure. Environmental and occupational health and safety issues associated with this project include:  liquid effluents, air emissions, solid waste disposal, wood supply and worker exposure to aerosols, dust and fumes.  IFCs Environment Division has concluded (based on IFCs Technical and Environmental Departments site visits and review of environmental audits prepared by the Company) that:  the completion of the Jundiaí municipal wastewater treatment system is on an appropriate schedule for providing acceptable treatment to the wastewater from the Jundiaí hardboard plant.  Furthermore, Duratex has met the expected pretreatment requirements for discharge to the Jundiaí municipal system.  In all other plants, liquid wastes are adequately treated and disposed of in accordance with local laws and regulations and World Bank guidelines.  Stack emissions are adequately controlled in areas where air quality is a concern.  Tree plantations are operated in a sustainable manner with protection given to large areas of natural habitat.  The proposed second investment in Duratex will produce new facilities that will be in full compliance with World Bank guidelines, and produce substantial environmental improvements in existing facilities.    The  is  from the Public Information Center.       Host country location of environmental documents    Ed. Sul Americano - Av. Paulista, 1938 - CEP 01310-200, São Paulo, Brazil      Date SPI sent to PIC February 28, 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).