Rian Smith
Phone: (202) 473-6749
Fax: (202) 676-0365
E-mail: RSMITH@Worldbank.org
WASHINGTON, D.C., April 8 -- The International
Finance Corporation (IFC) has signed an agreement to invest US$20 million
in Ceramica Zanón S.A., a producer and exporter of ceramic tiles and porcelain
bathroom fixtures in Argentina. "An important IFC focus is helping
Argentine companies become internationally competitive in the newly open
economy, in particular through product quality and efficiency" commented
Mr. Helmut Paul, Director of IFC's Latin America and Caribbean Department.
"It is a priority for IFC and the World Bank Group to help medium-sized
enterprises, which have difficulty accessing term finance. Zanón is the
largest industrial employer in Neuquén and we are pleased to support the
province's industrial development." IFC's financing consists of a
US$14 million straight loan and a US$6 million convertible loan, both for
IFC's account. Zanón, a family-owned company, has also attracted equity
capital from private investment funds to assist the company in its immediate
expansion program. The project will improve Zanón's efficiency - already
amongst the best in the world in the industry - and increase production
at its ceramics plant located in Neuquen Province. Production also will
be expanded at Motta S.A., a fully owned subsidiary that produces premium
porcelain bathroom fixtures. Another subsidiary, Canteras Zafiro S.A.,
will continue to develop its quarries in order to become self-sufficient
in supplying key raw materials. These productivity improvements reflect
Argentina's country-wide effort to reduce costs under the fixed currency
regime established after the Mexican peso crisis. Zanón has been implementing
environmental improvements for many years in such areas as air emission
control and liquid effluent and solid waste disposal, which meet World
Bank environmental guidelines.
IFC is a member of the World Bank Group and is the leading multilateral
source of equity and loan financing for private sector projects in developing
counties.
