IIC Loan Will Enhance Profitability Of A Small Chilean Exporter Operating In The Wood Sector
10/16/2006Loan of up to US$5.5 million to Infodema S.A.
Washington, D.C. – On October 17, 2006, the Inter-American Investment Corporation (IIC) approved a loan of up to US$5.5 million to Infodema S.A. The purpose of the loan is to enable Infodema S.A. to finance upgraded equipment for diversifying its production of veneer and plywood boards.
With the IIC loan Infodema S.A. will be able to respond to increased foreign demand for the specialized plywood it produces. The expansion of the company’s plant in Valdivia will also improve profitability. By increasing production efficiency and optimizing production, Infodema will lower costs while manufacturing products with greater added value. US$400,000 of the loan will be used to improve the company’s environmental performance.
Greater production capacity will also enable Infodema S.A. to introduce its products into new markets. Infodema S.A. increased production by 30% in 2005 and 2006, and expects to increase it by 50% in the next few years. Infodema S.A.’s main export markets are the United States, Mexico, Argentina, and Australia, and it hopes to enter markets in Central America and Europe.
According to Robert Behrens, the Chairman of Infodema S.A.’s Board of Directors, "This loan provides an appropriate structure for financing the company’s expansion of production, in line with projected growth and expected results for the next few years."
The Inter-American Investment Corporation is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) 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 member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. For more information on the IIC’s activities, please visit www.iic.int.
Contact: Ana Maria Orellana (in Chile)
Telephone: + (562) 431-3707