Announcement of IFC Invests in Argentina Nine Million US Dollars for Cement Project on October 16, 1978

International Finance Corporation • 1818 H Street, N.W. Washington, O.C. 20433, U.S.A. 202-393-6360 IFC Press Release No. 79/11 Monday, October 16, 1978 IFC Invf!S ts in Argentina $9 Million .'for Cement Project The Intemational Finance Cbrporation (IFC), an affiliate of the World Bank, has agreed to assist J. Minetti S.A. of Argentina in financing an $82 million project to construct a 540,000 metric ton Portland cement plant in the North-central region of Argentina. In addition to a $9 million long-term loan by IFC, $24.2 million equiva- lent in loans will be provided by Banco Exterior de Espana and $22.6 million equivalent by the Argentine Development Bank. The balance of $26.4 million will be raised through shareholder contributions and internal cash flow. Although the project has been under consideration for a number of years, ~ recent improvements in the economic and business conditions and a growing demand for cement in Argentina have encouraged the Company to start construc- tion of the plant at this time. Tile plant, scheduled to begi~ commercial operations in early 1981, will be located near Malagueno in the Province of Cordoba. In the near future, demand for cement in Argentina is projected to outpace present domestic production capacity. Both the f'ederal and provincial govern- ments have indicated their full support for the Minetti project, as it will help expand and modernize the Argentine cement industry, and will substitute for expensive prospective imports. The new plant's inland location also fits the government's decentralization efforts and will contribute to regional develop- ment. The plant will provide 160 new jobs and generate an estimated $133 mil- lion in foreign exchange savings over the next fifteen years. Minetti has contracted with Centunion Espanola de Coordinacion Tecnica y Financiera S.A., of Madrid, Spain, and Klockner-Humboldt-Deutz of Cologne, •  - 2 - Germany, to be jointly responsible for the supply of engineering, foreign machinery and equipment, and for the supervision of the construction and • start-up of the plant. Minetti, a well established Argentine cement firm, has been in the busi- ness since 1930 and operates three other cement facilities in the interior of Argentina. • (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, n.c. 20433, Telephone (202) 477-5340.) •