Announcement of IFC invests in Envases Colombianos, S.A in Colombia on December 8, 1960

!! \'-----------------------------------------------, \-!,--!! PRE'3S RELEASE NO. Sl SUBJECT: IFC invests in FOR RELEASE Envases Colombianos, S.A. A. M. Newspapers in Colombia December 8, 196o The International Finance Corporation announced today a commitment to invest US$700,000 in a Colombian company, Enva~~ Colombianos, S.A., or Barranquilla, primarily to help finance the construction and initial operation or a plant to manufacture metal cans for food packing and for general use. The new company will also take over the paper and sheet metal printing opera- tions or an existing Colombian company, Empresa Litografica, S.A. • Controlling interest is owned by Messrs. Alberto Roncal.lo and Adolfo Gieseken ot Barranquilla. The minority stockholder or the company is American Can Company, the world I s largest producer of metal cans. Equipment for the new plan} will be supplied 'l,y American '~an Company and installed Wlder the supervision or American Can Company experts. American Can Company technical personnel will be in /bharge of productioh 'lllltil comple- i; !) tion of a training program designed to repJace American personnel with \\ Colombians. Substantially, all food cans now used in Colombia are imported. Lack of a domestic supply is thought to be at least partly responsible tor the very low per capita consmption or about 2t cans per year. Local availability of cans is expected to stimulate both production and consumption of canned foods, eventually bringing the demand for food cans more nearly into line w.lth the • much higher per capita consumption found in other Latin American countries.  - 2 - The new plant is designed tor capacity production that anticipates an increased future demand. Production ia expected to begin about ·md-1961. • Total cost of the project is estimated at $2,830,000 in U.S. dollars and dollar equivalent. In addition to the IFC investment of 1700,000, this will include US$1,300,000 equivalent of share capital, plus other peso financing. The IFC investment will be in unsecured dollar notes bearing 7% interest payable in U~S. dollars and maturing from 1966 to 1972. IFC expects also to receive addit;onal interest on a defe:nnent plan related to profits, and an option on capital stock of the Colombian company. IFC •s commitment is subject to completion of' the necessary legal formalities. • •