Announcement of Argentine and Spanish Firms, IFC Sponsor Forty-Three Million US Dollars Fishing Project on July 31, 1979

• International Finance C01poration 1818 H Street. N.W WashingtoP. D C: 20; 33. 202-477-1234 u B A. IFC Press Release No. 80/2 Tuesday, July 31, 1979 Argentine and Spanish Firms, IFC Sponsor $43 Million. Fishing Project A~gentine and Spanish investors and the International Finance Corporation are joining to establish a major, $42.7 million, integrated fishing project in Argentina, that will catch and process an estimated 58,500 tons of fish and shellfish a year, pr1..ncipally for export. Sponsors of the venture, Alpesca S .A., are Alpargatas S .A., art. established Argentine manufacturer, and Aucosa/Atlansur, a leading Spanish fishing and fish processing group. The project will be an integrated operation with processing plants at Mar del ~ Plata, some 250 miles south of Buenos Aires, and Puerto Madryn, another 500 miles down the Argentine coast. The Company will operate a fleet of six ships consisting of stern trawlers and combination vessels for both midwater and bottom trawling. Alpesca, at full capacity, will have an estimated annual catch of 48,500 metric tons of hake and associated species and 10,000 tons of anchovy, tuna and mackerel. Output will mainly comprise frozen hake products and shellfish for export; canned fish, mainly for domestic sale; and fish meal and oil for sale locally or abroad, depending on market conditions. Equj_ty investors in the project are Alpargatas, $3.1 million; Aucosa/ Atlansur, $2.5 million; and IFC, the World Bank affiliate that supports private enterprises in developing countries, $480,000. The equity investors are also providing con- vertible loans for $2.5 million. Long-term debt includes: loans from Argentine banks, $10.3 million; IFC, $5 million; and Banco Exterior de Espana, approximately $3.6 million. Suppliers' credits of approximately $5.8 million and $9.4 million in internal cash generation complete the financial plan . •  - 2 - • Argentina's extensive fishing grounds have been little utilized in the past and provide attractive development opportunities. The project is in line with Government efforts to develop Argentine fishing activities and decen- tralize the sector towards southern Patagonian ports. The project will create more than 800 jobs and is expected to generate almost $25 million a year in net foreign exchange ~arnings. Aucosa/Atlansur, the technical partner, is an established group experienced in fishing, fish meal production and cold storage management. Alpargatas is a leading Argentine footwear and textile manufacturer dtversi- fying into non-textile areas. / '1 • (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) 477-2032.) •