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.