Announcement of IFC Investment in Uruguay Three Million Eighty Thousand Million US Dollars for Improved Tire Production on July 7, 1976

International Finance Corporation 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. 202-393-6360 IFC Press Release No. 77/2 Wednesday, July 7, 1976 First IFC Investment in Uruguay $3.8 Million for Improved Tire Production The International Finance Corporation (IFC), an affiliate of the World Bank, is making its first investment in Uruguay with a $3.8 million loan to help expand and modernize Fabrica Uruguaya de Neuma.ticos S.A. The financing is part of a program to introduce radial tire productioi,. increase tire manufacturing capacity by about 35 per cent, and improve operating efficiency and product quality. The Company has already spent about $3.5 million on the program and the remaining $8.5 million of project financing will be provided by IFC's loan, other foreign sour.ce credits of' $500,000 and $4.2 million in cash generation. Fabrica Uruguaya de Neumaticos is one of the largest industrial companies • in Uruguay and also one of the most widely held, with some 2,500 shareholders . It manuf'actures a diverse range of' products, the principal being automotive, tractor and commercial vehicle tires; other product lines include bicycle tires, leather and rubber shoes, and electric cables. The project conforms with the Government's objectives to increase the eff'iciency of the industrial sector and enhance export opportunities. It is expected to result in foreign exchange earnings of more than $4.5 million a year. (Any inquiries relating to IFC's participation in this project should be directed to the IFC Business Relations Unit, 1818 H Street, N.W., Washington, D.C. 20433, Telephone (202) 477-5770) . •