Announcement of Major Fishing Operation in Uruguay Launched on December 18, 1979

• International Finance Corporation 1816 H Str~et, N.W. Wiiiihington, D.C. 20433, U.S.A. 202-4 77-1234 IFC Press Releas2 No. 80/12 Tuesday,December 18, 1979 Major Fishing Operation iti Uruguay Launched Uruguayan investors, National Sea Products Ltd. of Canada, through an affiliated company, and the International Finance Corporation (IFC) have launched a $21.6 million fishing project for Astra Pesquerias Uruguayas S.A. Current plans anticipate anannual export oriented production of about 17,000 metric tons of frozen fish, fish meal and oil. Astra will operate six fishing vessels and a combined filleting/freezing and meal/oil plant at La Paloma, Uruguay, about 150 miles east of Montevideo. It will have an annual production capacity of 7,350 metric tons of frozen fish, 600 • tons of squid and 8,700 tons of fish meal and oil, making it the largest fishery venture in Uruguay and the largest integrated operation outside of Montevideo. T~e Aznarez and Strauch Groups, both well-established Uruguayan agro-industrial companies are the principal shareholders of the Company. National Sea Products Ltd. of Canada, the technical partner, through an affiliated company; IFC an affiliate of the World Bank, which supports private investments in developing countries; and other Uruguayan investors are also participating in the equity. IFC has also agreed to make a long-term, fixed-rate loan of $4.5 million. Additional project financing will be provided by cash generation and suppliers' credits from Dannish export credit facilities. The fishing fleet will operate in joint Argentine-Uruguayan fishing grounds and is expected to have an annual catch of 17,000 metric tons of hake and other deep water species and 30,000 metric tons of anchovy. The ships, four stern trawlers and two combination vessels, will come from the shipyards of the Dannish firm of Burmeister and Wain. The fish meal and oil plant is being purchased from Atlas of Denmark. National Sea Products Ltd. will provide fishing and processing expertise together with marketing assistance~ • The project supports the objectives of the Uruguayan National Plan for Fisheries which was introduced in 1975 as part of the country's overall development plan. It will be the first new fishing enterprise to be located in the port of  - 2 - La Paloma, which is being developed as the country's ftiture leading fishing center. • The Food and Agriculture Organization of the UN and the Uruguayan Government have undertaken extensive surveys of the fishing potential of the area and have established maximum sustainable yields to preserve this previously underutilized resource. The determination of Astra's tonnage has taken into account Uruguay's objective of achieving adequate resource conservation. Astra will generate an estimated $11 million in export earnings per annum with most of the output being marketed in North America and Europe. It will also benefit the Uruguayan economy by establishing a major industry in a less developed area and by creating empl9yment for over 400'workers. IFC assisted the project sponsors by helping them develop the project, strengthen the financial plan and negotiate the technical assistance and marketing agreements. • [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) 676-0394.] •