IDB Invest finances Innacensa to strengthen Ecuador’s productive matrix
IDB Invest, the IDB Group’s private sector institution, signed a $22.4 million loan with Ecuador’s Industria Nacional de Ensamblajes S.A. (“Innacensa”). The operation will fund the installation and operation of a television set assembly plant.
The project is aligned with the government’s “Ecuadorean Productive Matrix Change” plan and its development results include an increase in the domestic production of household appliances that add value through local assembly; the transfer of know-how and innovation; an increase in productivity and competitiveness; the generation of more than 80 job positions; and hard-currency savings through a partial substitution of imports.
Local assembly means that about 25% of the production costs are generated through domestic suppliers, including many small and mid-sized enterprises (SMEs). The project seeks to strengthen the position of Innacensa as a leading television maker in Ecuador, so it can be turned into a regional hub for producing and distributing Surface Mount Technology (SMT) TV sets.
IDB Invest participation strengthens the project’s financial viability by providing long-term financing.
About IDB Invest
IDB Invest, the private sector arm of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to supporting the private sector in Latin America and the Caribbean. IDB Invest finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a current portfolio of $11.6 billion under management and 330 clients in 21 countries, IDB Invest provides innovative financial solutions and advisory services that meet the demands of its clients in a variety of sectors. As of November 2017, IDB Invest is the trade name of the Inter-American Investment Corporation. www.idbinvest.org
Innacensa, a member of the Estrada Group, was set up in 2014 to complete the installation of LG Electronics Inc.’s first assembly plant in Ecuador, initiating operations in mid 2015. Innacensa currently produces ten models of LED SMART (light emitting diode) SMART TV sets and two models of OLED (organic light-emitting diode) in various sizes for the Ecuadoran market. It is worth noting that Innacensa is currently the only company authorized by LGE to produce OLED TVs in Latin America and the Caribbean.