Randon S.A. Implementos e Sistemas Automotivos Summary Of Project Information (SPI)       Project Name    Brazil-Randon              Region    Latin America and the Caribbean        Sector       Project No008768   Projected Board DateMay 2, 1998   Company NameRandon S.A. Implementos e Sistemas Automotivos ("Randon")   Technical Partner and/or Major Shareholders    	 Randon is a fully owned subsidiary of Randon Participacoes S.A (RP), a publicly listed company whose shares are traded on the Sao Paulo stock exchange.  RP, in turn, is controlled by the Randon family through its investment arm, Dramd Participacoes e Administracao Ltda., which owns 77% of RPs voting common shares and 0.5% of its non-voting preferred shares (together, these holdings amount to 27% of RPs total outstanding shares).  RPs remaining common shares and its preferred shares are held by a number of Brazilian institutional investors.    Project Cost Including Proposed IFC Investment    	Total project cost is estimated at US$69 million. IFC is considering a total investment of US$25 million including an "A " Loan of US$7 million and a "C" Loan of US$3 million, both for its own account, and a "B" Loan of US$15 million, for the account of participating banks.    Location of Project and Description of Site    	The proposed project will be carried out at Randons existing sites in Caxias do Sul, a small city in the State of Rio Grande do Sul, and Sao Paulo in Brazil and in Rosario, Argentina.    Description of Company and Purpose of Project   (include IFCs Role and Development Impact)    	Randon is a Brazilian manufacturer of truck trailers and semi-trailers. The Company also produces axles and suspensions for heavy-duty trucks. Randon is a medium-sized company with estimated 1997 sales of US$252 million.  The Company is planning to undertake a modernization and expansion program in order to respond to anticipated growth in demand as well as the threat of new competition.  The Project will enable Randon to increase its capacity for the production of trailers/semi-trailers from 45 units a day to 70 units a day.  At the same time, the Company will double its capacity for the production of axles and suspensions.  Randon will also build a small new assembly plant in Argentina in order to better serve that market.  In addition to providing long-term financing which is not easily available to Randon from other sources, IFC will endeavor to introduce the Company to the international syndicated loan market through the proposed B Loan.  IFC will also advise the Company on corporate governance issues and environmental management.  The benefits of the project should include: (i) the creation of a stronger Brazilian company, better able to withstand competition from abroad; (ii) generation of new jobs as the Company expands its operations; and (iii) the provision of much needed additional transportation capacity for goods in Brazil.    Environmental Category and Issues    	Category B. Environmental, occupational health and safety issues associated with this project include: air emissions,liquid effluents, solid and harzardous waste disposal, fire prevention and emergency response, contaminated land from present or past operations, and worker exposure to harzardous materials, fumes, noise, and dust. The air emissions at the Randon plant in Caxias do Sul satisfy local regulations and World Bank guidelines, and the plants in Sao Paulo do not produce air emissions. Only the plant at Caxias do Sul produces industrial wastewater and it is treated according to local regulations and fulfils World Bank guidelines. The company has a program for selective residue collection for recycling, other materials are disposed of by licensed specialized companies. Randon manages hazardous materials according to internationally accepted standards, and has adequate fire prevention equipment and procedures for emergency response. The company provides training for all employees on environmental issues, occupational health and safety, first aid and fire safety. Significant adverse impacts on the environment and worker health and safety are not expected from this project.    The  is  from the Public Information Center.       Date SPI sent to InfoShop          April 2, 1998      This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporations Board of Directors.  It is provided for the purpose of enhancing the transparency of IFCs activities and should not be construed as presuming the outcome of IFC Board consideration.    For Additional Information contact:  Corporate Relations Unit -   telephone: (202) 473-7711   facsimile: (202) 974-4384  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).