Announcement of Investment in Laminas del Caribe, S. A. in Colombia on July 13, 1959

~I \ff NT E RN AT I 6 NA L ·f, '~818 H''s-r,RE'[{T, Fi NANCE N.W., WASHINGTON 25, 0. C. CO R p O .~AT ION .:TELEPHONE: EXECUTIVE 3-6360 PRESS RELEASE NO. 27 FOR RELEASE SUB\JECT: Invsstnent in LA.MINAS DEL A. M. Newspapers CARIBE, S. A. in Colombia 1-fonday, July 13, 1959 The International Fi:n,ance ft9rporation ( JFC) announced today an invest- ment of $500,000 in Laminas del Caribe, S. A. (1.AHINAS), a Colombian corpo- ration, to finance a prograin to improve and diversify its fibreboard products. La.minas dcl Caribe, S. A. was formed in 1957 by a group of Colombian industrialists, headed by Sr•,. Hernan Echavarria O., who acquired machinery which had ori~1.na1ly been ordered for a government project. The Laminas • plant was constructed at Soledad o; the Magdalena river, near Barranquilla. P!'oducti.on began in January of tllis year. A good market for imported fibreboard existed in Colombia prior to startup of the new plant and is steadily increasing because cf volume of ccmstruction of low-priced housing and demand for packaging, furniture and other industries. Larn.i.nas is pi1rchasing new machinery to supplement j ts<, present facilities, upgrade its products and ensure greater fle>1bility to meet changing market requirements. Total cost of the improvement progra.rn is }625,000. IFC 1 s investment of ~~ 500,000 will be in U.,S. dollar Notes maturing by 1967, and bearing ir.1.ter-est at 7% in dollars and additional interest related to profits up to ' a maximum of 5% payable in Colombian pesos. In addition, IFC will receive • an option on share,s of the company • The commitment is subject to completion of the necessary legal f 07.'mP....ll ties •