Announcement of Investment in Acero Solar, S.A. in Mexico on September 2, 1960

INTERN AT fON AL F,I NANCE CORPORATION .•1818 H STREET, N.W., WASHINGTON 25. D. c. TELEPHONE, EXEC~'TIVE3,6360 \\. PRESS RELEASE NC:b h7 SUBJECT: Investment in FOR RELEASE ACERO SOLJi.R, S. A. A. M. Newspapers in Mexico Friday, September 2, 1960 The Internat~onal Finance Corporation (IFC) announced today a com-, mitment to invest U.S. $280,QOO in Acero Solar, S.A., of Mexico,for an expansion chiefly f'or-th!3 manufacture of ~gh speed twist' drills. Acero Solar,. is a rece1,tly established enterprise at present' produc- ing high and.medium. alloy steel. bars, steel castings, forgings, and tool bits. Its plant is' located at Tla.lnepantla, near Mexico City. Principal stockholder and general manager is Charles G. Seifert, ir. Share;s:~re • also held by several other investors, including the company's president, Sr. Jorge Perez y Bouras. Twist drills are used throughout industry and in the constructi~~ field. Virtually the entire domestic supply is at present. imported. Acero Solar will be the onlHy manufacturer of twist drills in Mexico and ! ' expects to supply a substari'.tial portion of the market in the sizes it will produce. -- Total cost of the project is estimated to be U.S. t640,000 equivalent. The IF'C investment will be in unsecured doilar notes bearing 7% interest payable in dollars and maturing between 1964 and 1970. IFC will also·re- ceive a right to participate.in profits. IFC•s commitment is $ubject to completion ot the· necessary legal •• fonnalities •