Norson II (IFC-37803)

Countries
  • Mexico
Geographic location where the impacts of the investment may be experienced.
Specific Location
Sonora, in and around Hermosillo
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Feb 8, 2017
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Norson Holding, S. de R.L. de C.V.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 15.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. 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, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Jun 21, 2017

Disclosed by Bank Dec 23, 2016

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.
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.
Investment Description
Here you can find a list of individual development financial institutions that finance the project.
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.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.
ACCOUNTABILITY MECHANISM OF IFC 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/

How it works

How it works