(24 March 2016) Sace (Group CDP) and Sider Engineering just concluded an important financing operation to support the Friulian company’s supplies to a steel plant in Milagro, Ecuador. Under the project, worth a total of $131 million, Sace guaranteed a $30 million loan granted by the Inter-American Investment Corporation (IIC), a multilateral financial institution of the Inter-American Development Bank Group (iDB) dedicated to promoting economic development in Latin America and the Caribbean through the private sector. The loan is intended for the purchase by Ecuador’s Adelca of a mini mill plant for its new Milagro steel site, in the province of Guayas, a very rural area that enjoys substantial tax incentives. The new plant will increase the production capacity of steel bars and wire rods in Ecuador by 400.000 tons per year, reducing the dependence on imported products, meeting domestic demand and helping reduce costs for the benefit of many different sectors, in particular construction, infrastructure, but also transport, energy and manufacturing. Since 1974 Sider Engineering operates in the design, manufacture and installation of machinery and complete “ready-to-use” products for the steel industry worldwide, producing machines in Italy. With this intervention, through the consolidation of the partnership with the IDB Group, SACE managed to strengthen the penetration capacity of Sider Engineering in a high potential market like Ecuador, where the government allocated important resources for the diversification of the economy, mainly dependent on oil revenues, with good margins of development in the steel sector. (Red)
