Shanghai Krupp Stainless Co.,  Ltd. Summary Of Project Information (SPI)       Project Name    China-Shanghai Krupp Stainless Steel Ltd. (SKS)      RegionAsia   Sector   Project No007424   Projected Board DateMarch 15, 1998   Company NameShanghai Krupp Stainless Steel Ltd.    Technical Partner and/or Major Shareholders    	The Project Company Shanghai Krupp Stainless was founded in 1997. Technical partner and majority shareholder of the Project is Krupp Thyssen Stainless GmbH (KTS), with 60% of the equity. KTS is the worlds largest producer of cold rolled stainless steel.     	Shanghai Pudong Steel (SPS) will hold the remaining 40% of the equity and is one of Chinas largest steel companies with a production of 2 million tons per year.    Project Cost Including Proposed IFC Investment    	The project cost, representing the first phase of a $1.4 billion fully integrated stainless steel project, is currently estimated at $300 million.  IFCs proposed investment would consist of an A Loan of about $30 million and a syndicated B Loan of about US$60 million for the account of participating banks.  The German bank Kreditanstalt fuer Wiederaufbau (KfW) intends to provide export credit financing of about $90 million on a parallel basis.    Location of Project and Description of Site    	The project is located in Pudong, a suburb of the city of Shanghai. Pudong has been designated for further industrial development. The project site covers an area of about 40 ha and has been designed to allow for the future expansion of the plant.     Description of Company and Purpose of Project   (include IFCs Role and Development Impact)    	The Company will be one of the largest cold-rolling mills in China with a capacity of 72,000 tons of bright annealed stainless steel per year.  Cold rolled stainless steel flats are needed in the construction sector, automotive and process industries, as well as for kitchenware and household uses. Demand for stainless cold rolled flats in China has increased strongly over the past years, more than 80 % of which has to be imported as there is only limited domestic production so far. The project will lessen Chinas dependence on imports and support Chinas industrial growth.  By providing long term limited recourse financing for this project, IFC plays a catalytic role in assisting major international players, such as KTS, to transfer state of the art technology and know how to China as well as in mobilizing funds from international commercial banks for the development of the private sector.                                                    Environmental Category and Issues    	This project involves the design, construction and operation of a new stainless steel manufacturing facility in the Pudong industrial development zone, Shanghai, People''s Republic of China.  This is an environmental review Category A project.  The facility will be located adjacent to the Chinese sponsor''s existing steel plant, and will utilize parts of the existing infrastructure.  The facility will be designed according to Western European standards, and will fully comply with both local and World Bank guidelines.  The land for the facility is currently occupied partly by the Chinese sponsor, partly by other industries, partly by farm collectives and residential areas.  A comprehensive Resettlement Action Plan (RAP) has been developed, in cooperation with the affected parties, to manage the required resettlement and mitigate its negative effects and has been attached to the Environmental Assessment for the project.      The  are  December 22, 1997 from the Public Information Center.       Host country location of environmental documents    IFC Beijing Office      Date SPI sent to InfoShop December 19, 1997   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) 473-3800   Fax: (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).