US$5 Million Loan To Ecuadorian Wood Product Company Will Help Generate A Net US$76 Million In Foreign Currency
10/22/2007Aglomerados Cotopaxi S.A. exports approximately 40% of its production, chiefly to Colombia and Peru
Washington, D.C. - On October 23, 2007, the Inter-American Investment Corporation (IIC) approved a US$5 million loan to Aglomerados Cotopaxi, S.A. (ACOSA), a vertically integrated wood product company that promotes sustainable forestry.
The financing from the IIC will enable the company to invest in equipment that will increase its operating capacity, cut production costs, and improve industrial safety. ACOSA will also improve its environmental and energy performance and purchase and plant forests in order to increase its supply of raw material. ACOSA produces particleboard, medium-density fiberboard, and lumber.
ACOSA has been at the forefront in developing Ecuador’s forestry sector. Such development helps diversify the nation’s economic activities, further the environmentally sound use of natural resources, and increase exports. ACOSA is ISO 9000 certified.
"ACOSA has been competing successfully in the local and regional markets, selling value added products instead of raw materials. If it were not for ACOSA, the sector might be operating far below its potential in Ecuador," according to David Levy, the IIC investment officer in charge of the operation. The operation is expected to generate US$4 in value added for each dollar of financing provided by the IIC.
ACOSA provides jobs to more than 600 people. Through its outreach program it supports local schools in the communities of Pastocalle, Tanicuchi, Mulaló, and Toacaso by providing hundreds of students with courses in business management.
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 encouraging 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: John Beckham/David Levy
Telephone: (202) 623-3984