IIC Approves A US$5 Million Senior Loan To Tecnofil S.A., A Copper Manufacturing Plant In Peru
11/05/2002WASHINGTON, D.C. - On November 6, 2002, the Inter-American Investment Corporation (IIC) approved a US$5 million senior loan to Tecnofil, S.A. a copper manufacturing plant in Peru. The project consists of expanding and modernizing Tecnofil's facilities, as well as providing the necessary working capital to expand its sales. A new production line capable of producing copper products in a more efficient manner will be installed, as will new equipment in existing production lines to increase productivity and improve efficiency.
IIC funds will enable the company to increase production capacity, especially of those families of products that have the highest contribution margins. Most of the new capacity will be destined to copper busbars, bars, flatwire and copper alloys; these products are sold in international markets, command higher margins, and represent the best opportunities for growth. By investing in state-of-the-art production facilities and equipment, the company will be able to increase its production efficiency and thus increase exports by some US$14 million per year once the project is in full operation.
The complete restructuring and modernization the company has experienced during the last five years, which will be consolidated through this project, has allowed it to preserve a viable business that employs 256 people and utilizes a high quantity of local resources. The Company contributes close to US$2.5 million per year in salaries and benefits to the local economy and uses US$21.5 million per year in raw materials such as copper and zinc that are mined and refined locally. These are one of Peru's traditional and more stable sources of income. With the increased production brought about by this project, there will be greater usage of local raw materials and other factors for an additional amount of close to US$7 million per year or approximately US$56 million during the next eight years.
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