Mexican Paper Company Quadruples Paper Production with IIC Support
IIC loan to improve competitive position of Grupo Corporativo Papelera
Washington, D.C., November 7, 2013 — The Inter-American Investment Corporation (IIC) and Grupo Corporativo Papelera S.A. de C.V. (GCP) have signed a loan agreement for up to US$14 million for the purchase and commissioning of a machine that will quadruple the Mexican company’s paper production to 40,000 tons per year.
The proceeds of the loan will finance the purchase of the new machine and its ancillary equipment, facilitating in-house manufacture of the paper necessary for its production of bathroom tissue, napkins, and paper towels. The Loan will consist of two tranches, denominated in U.S. dollars and Mexican pesos, respectively.
“This investment is critical for GCP’s development, since it will enable us to balance our paper conversion with the manufacture of our products,” noted GCP general manager Luis Fernando Oviedo. “We will reduce the amount of paper that we purchase from other suppliers by up to two thirds, which will have a significant impact on our margin.”
“With this long-term operation, the IIC is supporting GCP’s strategy of diversifying its funding sources, enabling it to improve its competitive position and offer high-quality products to its customers. The IIC funding is also expected to strengthen the company’s environmental and corporate governance practices,” added Aniceto Huertas-Corcelles, IIC investment officer in charge of the operation.
Founded in 2001, GCP is a Mexican enterprise engaged in the manufacture and conversion of sanitary paper, primarily into products such as bathroom tissue and napkins. To date, it has production plants in Toluca and Tepetlaoxtoc in the State of Mexico.
About the IIC
The IIC, a member of the Inter-American Development Bank (IDB) Group, promotes private-sector development in Latin America and the Caribbean with a focus on small and medium-sized enterprises (SMEs). We help companies streamline management processes and provide them with financing in the form of equity investments, loans, and guarantees, as well as innovative technical assistance, advisory services, and knowledge products. In 2012, the IIC approved more than 70 operations totaling some US$400 million. Since its inception in 1989, the IIC has approved approximately 800 direct loans to SMEs and financial intermediaries, for a total of US$4.8 billion. An additional US$2.8 billion has been mobilized through cofinancing and syndication agreements. For more information on IIC activities, visit www.iic.org.
Contact: Aniceto Huertas-Corcelles
Telephone: + 1 (202) 623 2036 in Washington, D.C.