IIC Signs A Five Million Dollar Contract With América Leasing S.A.

02/12/2002

The Inter-American Investment Corporation (IIC) approved on February 13, 2002 a $10 million loan to Quimpac S.A., a Peruvian chemical, salt and paper producing plant. Quimpac, S.A. is one of the five major producers of chlorine and caustic soda in South America and the leading producer of paper rolls and salt in Peru. The project involves a series of investments in infrastructure, machinery and equipment to replace outdated assets, reduce production costs, improve environmental conditions and make better use of the installed capacity.

With the help of the IIC loan, the company will expand production levels and improve product quality. The investments in equipment upgrades and the elimination of bottlenecks will enable the Company to increase production capacity. The new investments will also allow the Company to introduce new chlorine byproducts in the Latin American chemical markets. With this project, Quimpac will be able to considerably increase its export sales. Also, 45% of the proposed investment plan is earmarked for investments that will have a positive impact on the environmental conditions by increasing safety and reducing waste.

This project will help create approximately 37 direct jobs and 200 temporary indirect jobs and will use large amounts of local raw materials and services.

The Inter-American Investment Corporation is a multilateral financial institution that is part of the Inter-American Development Bank Group. It provides financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. The IIC's mission is to promote the economic development of its regional borrowing member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size.

Contact: Steven Reed

Telephone: (202) 623-3981

Email: stevenr@iadb.org