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IFC INVESTS IN MEXICAN PETROCHEMICAL COMPANY


Mauricio Perea
(202) 473-0393


WASHINGTON, D.C., Feb. 9 -- The International Finance Corporation (IFC) has signed an agreement with Tereftalatos Mexicanos S.A. (Temex), Mexico's only producer of purified terephthalic acid (PTA), to finance an expansion of its present facilities. The project will enable Temex to boost PTA production from 310,000 to 510,000 metric tons per year and improve its environmental standards, through less energy consumption and better raw material recovery. PTA is a key raw material in the production of polyester fiber for the textile industry and of PET resins, which are used in the manufacture of plastic bottles. PTA demand in Mexico is expected to increase significantly over the next few years. IFC's financing consists of two loans totaling US$20 million. IFC has also arranged a syndicated loan of US$20 million to be provided by Comerica Bank, Société Générale, LTCB, West LB, and Bank of Austria. Temex is a subsidiary of Alpek S.A. de C.V., the petrochemical holding group of Alfa S.A. de C.V. IFC helped finance t
he original Temex project in 1978. "This project indicates IFC's strong continuing commitment to growth-oriented Mexican companies that can compete successfully in both domestic and export markets," said Mr. Jean-Philippe Halphen, Director of IFC's Chemicals, Petrochemicals, and Fertilizers Department. 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 countries. (30)