Decisive support for the productive sector in Ecuador

(Quito, May 14, 2009).- CAF granted a US$40 million loan to the cement company Lafarge in 2007 to finance its industrial expansion plan in the city of Otavalo.

The expansion, which was completed in 18 months for a total investment of US$120 million, has doubled installed capacity of the plant located in Otavalo from 800,000 mt/year to 1,600,000 mt/year of cement. The higher production will meet growing demand and promote the productive development of the country.

CAF director-representative in Ecuador Luis Paláu Rivas said he was very pleased with the opening of the expansion. He added that CAF supported the Ecuadorian private sector, particularly leading companies, by backing their growth plans, and strengthening and promoting their productivity and competitiveness.

The CAF executive said the finance granted to the cement company "is one of the largest that the multilateral organization has made to the private sector in Ecuador."

Expansion of the Lafarge industrial plant has contributed to the economic and social development and growth of the region and the country. Lafarge and its cement have been present in major works, for example the Juan León Mera bridge in the city of Ambato, the new Quito International Airport, and the bypass in the Papallacta sector.

The Lafarge Cementos company is part of the French Lafarge group, world leader in construction materials, with presence in over 79 countries and listed on the New York and Paris stock exchanges. Around the world, in 2008 the group generated total sales of US$25.7 million. In 2004 Lafarge acquired the Ecuadorian cement company Selva Alegre.