Announcement of IFC to Invest in Mexican Manganese Sulfate Plant June 16, 1987

I rnational Finame (mporation 019 RELEASE Tuesday, June 16, 1987 CONTACT Bruce McWilliams Press Release No. 87/67 (202) 676-1950 IFC TO INVEST IN MEXICAN MANGANESE SULFATE PLANT The International Finance Corporation (IFC) will invest up to US$2.5 million in a new manganese sulfate plant currently being constructed by Industrias Sulfamex S.A. de C.V. in Tamos, Mexico, it was announced. The plant, which will be operated by Industrias Sulfamex, S.A. de C.V., is expected to start production in late 1987. When it reaches full capacity in 1991, it will produce up to 21,000 metric tons per year of manganese sulfate for sale to both domestic and export markets for the production of fungicides and as a micronutrient in fertilizers and animal feed. The sponsor anticipates a later expansion in capacity up to 36,000 mty. For raw materials, the plant will use local manganese carbonate resources and chimney dust from a nearby manganese ore calcining process operated by Cia. Minera Autlan, S.A. de C.V., the largest manganese producer in the country. IFC's investment in the project involves a loan of US$2 million and a participation in equity of up to US$500,000. The remainder of the financing for the project will come from the equity subscribed by other partners: Grupo Proinmex, S.A. de C.V., Cia. Minera Autlan, S.A. de C.V., Agromex, Inc., Incometal Anstalt, Nacional Financiera, S.N.C., Comision de Fomento Minero, and from loans provided by the Mexican local banks, Bancomext (US$1.7 million) and Banca Confia (US$1.4 million). - MORE - - 2 - Industrias Sulfamex plans to export the majority of the plant's production to the United States, South America and Europe, filling the shortage of supply caused by Eastman Chemical Product Inc.'s termination of manganese sulfate production at the end of 1986. Industrias Sulfamex has acquired Eastman's brand name, Tecmangam, and access to production, regulatory and client information. Project design was developed by Sulfamex with support from Cia. Minera Autlan, S.A. de C.V., Nacional Financiera and Comision de Fomento Minero. The International Finance Corporation is an affiliate of the World Bank and the leading private sector agency which provides equity financing and long-term loans without government guarantees to private enterprises in developing countries. - END -