Announcement of Mexican Electrical Wire, Cable Firm in Thirty-Six Million Forty Thousand US Dollars Expansion on November 26, 1979

• International Finance Corporation IFC Press Release No. 80/9 1818 H Street. N.W. Washington, D.C. 20433, U.S.A. 202-477-1234 Monday, November 26, 1979 Mexican Electrical Wire, Cable Firm In $36.4 Million Expa,nsion Conductores Monterrey, S .A., a leading Mexican p,:r.oducer of electrical wire and cable, is undertaking a $36.4 million expansion with financial assistance from major international financial institutions. The project will help meet rapidly growing do~stic demand for wire and cable by increasing Conductores Monterrey's capacity 70 percent from 21,300 metric tons a year at present to 36,400 tons. Expansion and rationalization of facilities at the Comrany' s existing plant at Monterrey wi.11 add 9,900 tons of capacity and a new plant to be built at San Luis Potosi, 5,200 tons. This will raise Mexico's total domsstic capacity by 17 percent. The International Finance • Corporation (IFC) is lending $18 million for the project in conjunction with The First National Bank of Chicago) The Royal Bank of Canada and J.P. Morgan Inter- funding Corporation. Nacional Financiera, Mexico's largest development finance institution, is providing a Mex$180 million loan. Two other Mexican financial institutions, Fonda de Equipamiento Industrial {FONEI) and Multibanco Comermex will provide Mex$150 million.. Cash generation of $5. 8 million completes the financial plan. Conductores Monterrey is owned by Industrias CM, S.A., an electrical equip- ment manufacturing group, which is majority owned by Mexican investors. Canada Wire c;\nd Cable, Ltd., has a minority interest in Industrias CM, S .A. The Com- pany produces substantially all products in the electrical wire and cable field. Electrical wires and cables are basic industrial goods essential in nearly every economic sector. Thus, the project will not only support the growth of Mexico's economy directly, but also indirectly by providing products essential to the expansion of industrial infrastructure. Growth in domestic demand for electrical wire and cable has paralleled Mexico's economic expansion. Mexican wire and cable manufacturers have been • supplying all local needs. However, the industry is operating at full capacity  - 2. - and, without the added production, potential deficits in local supply could result. • Construction of the new plant at San Luis Potosi is in line with government objectives of developing that region and of locating new industry out of large urban areas. The project will also benefit the economy by creating more than 950 new jobs. • (Any inquiries strictly relating to IFC's participation in this ~roject should be directed to the IFC Information Office, 1818 H Street, N.W., Washington, D.C. 20433, Telephone (202) 676-0394.) •