Finance for construction of petrochemical plant

(Caracas, January 24, 1994).— A US$12.9 million loan will be granted to the company VASSA, SA to finance construction of a petrochemical plant and modernization of a second in order to produce 15,000 tons annually of food-grade white oils and 25,000 tons/year of medicinal-grade aliphatic solvents.

VASSA, founded by a group of professionals with wide experience in the Venezuelan oil sector, is a joint venture formed by PEQUIVEN and PURAMIN with private majority private capital.

White oils, which are the most versatile and oldest product derived from oil, are mainly used in the cosmetic, pharmaceutical, plastics, rubber, fiber and textile industries. They are in great demand especially on the Latin American market (Chile, Argentina and the Andean countries).

Aliphatic solvents are present in the preparation of paints and coatings, inks, adhesives, sealers and pesticides, among other uses.

The combined production of these plants will meet domestic demand with 60% going to exports.

This is the fifth loan CAF has granted to the Venezuelan petrochemical sector, given its wide ranging potential for development and its attractiveness for the private business sector. The previous loans were for Etoxyl, Praica, Resilin and Supermetanol.

The agreement will be signed in CAF headquarters by acting CAF President Pedro Sorensen, and VASSA President Jesús Cabello.