Announcement of IFC Supports Sixty-One Million Thirty Thousand US Dollars for Mexico to Increase Synthetic Fiber Output on July 8, 1971

.FOR IMMEDI.ATE RELEASE /jJ IN~ERNATIONAL FINANCE CORPORATION 0 . 1 8 1 8 H STREET, N.W., WASHINGTON o.,c. 20433 TELEPHONE: EXECUTIVE 3-6360 IFC Press Release No. 71/21 July 8, 1971 Mexico to Increase Synthetic Fiber Output IFC Supports $61. 3 Million Expansion I/ /j ::, The largest manuf~cturer of ~ynthetic fibe,rs in Mexico is expanding its p,:oduction capacity and diversifying its output with the help of the Inte,mational Finance Corporation and United States and Mexican banks. Celanese Mexicana S .A. (CEL.'\fEX) is receiving a loan of· $12 million from IFC, to support a $61. 3 million project that forms part of the company's ten-year expansion program • • CELMEX at present has 5,500 employees. The project will create some 900 newsJjobs, about one fourth of the total number of jobs expected to result from the company's ten-year expansion plan. A number of products manufactured by CELMEX replace imports. The CELMEX investment program is expected to result in substantial foreign exchange s av.f2ngs. CEL'\ffiX was founded in 1944 as a Mexican firm by the Celanese Corporation of the United States, which hoids 40% of the company's capital stock. CELMEX now ·produc<:;s thirty-one product lines, including a number of organic chemicals at seven locations, mostly in formerly depresse~ areas of Mexico. The market for synthetic fibers ar-d chemicals supplied by CELMEX has grown at an annual rate of approximately 18% during the period from 1967 to • 1970. Because of this continuec increase in demand, CELMEX decided to embark on major expansions of its product lines. /rrore • •• IFC P.R. No. 71/21 - Mexico - synthetic fiber • (_\ - 2 - A corpllary development has been increasing requirements for a number of raw materials presently imported. In recent years petrochemical feed- stocks which would be required for the production of these c,raw materials n ! \ have become increasingly available from Petroleos Mexicanos, the Governmen~~ 1 \j \ 1 \ \ - ' \\ owned company which produces petroleum and products made from it. This ~ {,1 situation has made it feasible for CELMEX, in additiQn 'to expansions," to pla1~ ( ,......_,·.,, the manufacture of several of these presently imported raw ~terials, a factor which will contr:{.bute significant-ly to the expected foreign exchange savings. Financial Details In addition to the IFC loan of $12 million, CELMEX has arranged for a • joint medium-term loan of $18 million from three United States banks. is able to draw $14 million equivalent under a line of credit arranged in Mexico. CELMEX Approximately $17. 3 million in expenditures for the project is to be financed from the comeany' s own cash flow. - 0 - •