IIC Contributes To The Poultry And Wood Processing Industries In Panama

04/18/1999

Grupo Melo, S. A. will be able to modernize
its machinery, equipment, and plants CIUDAD DE PANAMA, PANAMA - The Inter-American Investment Corporation (IIC) signed an agreement for a $6.5 million loan to Compañía de Finanzas y Servicios, S. A. (COFISESA) in Panama, the financial subsidiary of Grupo Melo, S.A. With this financing, Grupo Melo will finance one-half of the $14 million expansion project that this diversified producer of poultry and wood products will undertake.

Melo’s poultry division will invest in improving its hatching and raising processes; it will also upgrade the processing plant where poultry is slaughtered and the finished products are made. The wood products division seeks to upgrade its sawmill and its door plant in order to increase exports. Additionally, the company has embarked on a series of investments, including waste treatment facilities at the poultry processing plant and workplace safety initiatives at the door plant, with the goal of meeting international environmental and workplace safety standards.

The project will create fifty direct jobs and provide for foreign exchange earnings on the order of $31.2 million during the first ten years of operations.

Contact: Steven Reed

Telephone: (202) 623-3981

Email: stevenr@iadb.org