Announcement of IFC Supports Argentine Cement Producer Five Million Fifty Thousand US Dollars for Plant Expansion on June 1, 1971

FOR IMMEDIATE RELEASE \\ INTERNATIONAL FINANCE CORPORATION 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IFC Press Release No. 71/7 June 1, 1971 IFC Supports Argentine Cement Producer $5.5 Million for Plant Expansion Argentina's housing and construction sector will benefit from an expansion project being undertaken by Calera Avellaneda, S.A., one of the country's oldest cement companies, with the assistance of the International Finance Corporation. IFC is making a loan of $5.5 million to the $20 million project, which will add 400,000 metric tons to Calera's cement output, raising the plant's total capacity to 700,000 metric tons a year. The expansion • is expected to increase Calera's labor force from 690 to 770 workers • A new cement plant will be built next to the company's present factory and limestone quarry at Olavarria, sou~h of Buenos Aires. The quarry will be expanded to keep pace with the needs of the enlarged cement operations. The nearest suitable limestone deposits to Buenos Aires, the company's principal marketing area, are located in Olavarria. The demand for cement in the region served by Calera is projected to reach 4.4 million tons by 1975. With its expansion, Calera will be able to supply about 15% of this demand. The new plant will consist of a fully-integrated production line, independent of the existing plant except for workshops, laboratories and crushing facilities. Construction is expected to begin in early 1971, with completion scheduled for December 1972 • • /mr:•re: • :r.~ P.R. No. il/ '/ - At:ger1ti·na - ce~nt • - 2 - With the Calera investment, IFC now has made eight coDDDitments amounting to $29.2 million to a variety of Argentine private enterprise ventures. The projects have a total cost of approximately $178.0 million eq ui val en t. Calera is the seventh cement and concrete producer in Latin America to be assisted by IFC. IFC' s investments in these Latin American enter- prises total $14.7 million. Financial details: IFC's commitment to Calera consists of a $5.0 million loan and a $500,000 contingent loan. The remainder of the project financing is expected to be provided by suppliers' credits, about $7. 6 million • equivalent; the company's o~-rµ funds, about $5.3 million equivalent; and a loan from Banco Nacional de Dasarrollo Argentina, $2.0 million equivalent. Approximately $6 .8 mill:fon equivalent of the suppliers' credits will be provided by Centunion, the Spanish subsidiary of Klockner-Humboldt-Deutz, of Germany. Kll:lckner-Humboldt-Deutz is the main equipment supplier and will be responsible for supervising plant construction and engineering. - 0 - •