Where the impacts of the investment may be experienced.
Location: Sonora, in and around Hermosillo
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International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
- International Finance Corporation (IFC)
Bank Risk Rating: B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Board Decision Date: 2017-02-08
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Borrower or Client: Norson Holding, S. de R.L. de C.V.
The holder of the loan, grant, or other investment.
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Investment Type(s): Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD): $ 15.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD): $ 69.80 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
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Norson Holdings S. de R.L. de C.V. ("Norson" or the "Company"), is one of the leading integrated pork producers and processors in Mexico, and has a feed mill, farms, and slaughtering and meat processing facilities based around Hermosillo, Sonora. Norson is 50% owned by Smithfield Foods Inc., the world's largest pork producer and processor and 50% by Grupo Mazon, a Mexican business group. The project includes: (i) expansion of Norson's production capacity; (ii) development of new farms required to provide the capacity expansion, adaptation of some existing farming facilities and development of out-grower relationships with third parties; (iii) increasing slaughtering capacity at the processing plant; (iv) increasing the feed mill capacity; and (v) completing an ongoing project to add liners to the farms' effluent lagoons.This would be IFC's second investment with Norson. IFC's previous investment in 2013 helped to support modernization and expansion of the processing facilities in Hermosillo.
- International Finance Corporation (IFC)
Norson is a joint-venture between Grupo Mazon and Smithfield Foods Inc. Grupo Mazon is a Mexican business group based in Hermosillo, Sonora. Smithfield Foods, Inc., a wholly-owned subsidiary of WH group, is the world's largest pork producer and processor headquartered in Virginia. WH Group is a publicly traded company in the Hong Kong Stock Exchange, with operations in the production of meat products and related businesses such as logistics, packaging, materials, etc.
The total project cost is estimated at US$69.8 million, which consists primarily of investments in farms, slaughtering and processing equipment, waste lagoons, and working capital. The proposed IFC investment consists of an A Loan of up to US$15 million equivalent on IFC's own account. Out of this cost estimate, Norson is seeking to outsource the construction of some of the farms through leasing contracts, which could potentially reduce the investment amount.
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The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org
. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/
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