Announcement of Leading Ecuador Cement Company Plans Fifty-Five Million US Dollars Expansion on February 8, 1979

• International Finance Corporation IFC Press Release No. 79/24 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. 202-477-1234 Thursday, February 8, 1979 Leading Ecuador Cement Company Plans $55 Million Expansion The International Finance Corporation (IFC) will help finance a major, $55 million expansion by La Cementa Nacional, Ecuador's leading cement producer. IFC is the World Bank affiliate that assists the private sector of developing economies. The project will increase the Company's capacity to about 1,330,000 metric tons a year. It is being financed by local financial institutions, a stock offering, cash generation, and by the loan from IFC. Corporacion Andina de Fomento is lending $26 million for the project; IFC, $12 million; and local banks, $3 million. A share issue of $4 million, including an up • to $1 million subscription by IFC, and $10 million in cash generation complete the financing .. The expansion will help La Cementa meet rapidly growing demand for cement in Ecuador resulting from accelerated economic and investment activity. The project is expected to bring the country closer to self-sufficiency in_ cement; help alle- viate the need for imports, which have increased sharply in recent years; generate estimated net foreign exchange savings of $23 million a year at full production; and, through the stock offering, broaden Ecuadorian ownership in the Company. La Cementa will double the capacity of its recently constructed Cerro Blanco plant, near Guayaquil, by adding a second 525,000 tons-per-year cement production line. This would help increase La Cemento's competitiveness and profitability. La Cementa is majority Ecuadorian owned. The main partner is Corporacion Financiera Nacional, the leading official development bank. Holderbank Financiere Glaris, a Switzerland-based, worldwide operator of cement companies, is minority technical partner in the Company and will assist in project implementation and start-up • • (Any inquiries strictly relating to IFC's participation in this project should be directed to the IFC Information Office, 1818 H Street, N.W., Washington, D.C. 20433, Telephone (202) 477-5340.)