WASHINGTON, D.C., December 3, 1999 —
The International Finance Corporation is helping to develop the Brazilian
petrochemicals industry with an investment of US$85 million for Innova
S.A. to build styrene monomer and polystyrene plants in the state of Rio
Grande do Sul.
IFC is providing a loan of $20 million and $5 million in equity, as well
as a B loan of $60 million for the account of participant banks. The $283.4
million project will purchase and rehabilitate an ethylbenzene plant in
the Triunfo petrochemical complex, and build a styrene monomer unit, two
new polystyrene plants, and offsites and utilities. The styrene plant will
begin operating in January 2000, and the polystyrene plant will start up
in October 2000.
The Innova project will help integrate production from ethylbenzene to
polystyrene, making the company a world-class producer of these essential
items, said Jean-Philippe Halphen, Director of IFC's Chemicals, Petrochemicals
and Fertilizers department. Brazilian producers will be able to compete
internationally and supply feedstock to domestic industry at competitive
Innova was established in 1997 to build and operate a styrene/polystyrene
production facility in the Trifuno petrochemical complex in Rio Grande
do Sul state. It is a subsidiary of Perez Companc International, an offshore
holding company of Perez Companc SA of Argentina, and an important player
in Argentina's oil and gas sectors.
The mission of IFC, part of the World Bank Group, is to promote private
sector investment in developing countries, which will reduce poverty and
improve people's lives. IFC finances private sector investments in the
developing world, mobilizes capital in the international financial markets,
and provides technical assistance and advice to governments and businesses.