Announcement of IFC Invests 50 Million Dollars in Argentine Steel Producer on January 14, 1999

IFC INVESTS $50 MILLION IN ARGENTINE STEEL PRODUCER WASHINGTON, D.C., January 14, 1999 --- The International Finance Corporation has signed an agreement with Acindar S.A., Argentina's leading non-flat steel producer, to invest up to US$50 million to upgrade the company's operation facilities. The investment would help the company to meet domestic demand and maintain its market leader position in the region. The project will increase Acindar's production capacity from 1.35 million to 1.85 million metric tons, bridge the imbalance in its existing production capacities, and upgrade its wire drawing and finishing operations. It will also ensure that the revamped facilities meet the World Bank Group environmental guidelines. In order to serve the local markets more efficiently, three distribution centers are scheduled to open in Buenos Aires, Santiago, and Sao Paulo. Mr. Karl Voltaire, Director of IFC's Latin America and the Caribbean department said this support of Acindar reflects IFC's confidence in the country's economic prospects and would help restore the access of Argentine companies to international capital. IFC, part of the World Bank Group, encourages economic growth in the developing world by financing private sector investments, mobilizing capital in the international financial markets, and providing technical assistance and advice to governments and businesses. IBRD IDA IFC MIGA ICSID