New credit for the Venezuelan petrochemical industry

(Caracas, May 5, 1992).- A US$20 million bridging loan was today granted to the joint venture Resinas Lineales, CA (RESILIN). The facility will be used for imports of capital goods required for installation of a linear polyethylene plant to be located in the Zulia Petrochemical Complex at a total cost of US$298 million.

CAF will contribute a total of US$30 million to construction of this plant, which will begin production in 1994. The plant will have an estimated production capacity of 150,000 tons annually of high and low density linear polyethylene, which will supply domestic demand in Venezuela and export significant volumes. The project will have a great impact on the production of the plastics manufacturing industry, allowing the country to save substantial amounts of foreign currency. The plant will use advanced Sclairtech technology under license from DuPont Canada, which is very versatile.

This is the third loan that CAF has granted to the Venezuelan petrochemical industry, sector with great potential for development because of its attractiveness to private business and foreign investors. Last March, CAF approved the largest loan granted to the private sector of its five member countries (US$47 million) for construction of an ethanol plant in Anzoátegui state. Previously, in 1990, the joint venture Productora de Alcoholes Hidratados, CA (PRALCA) received US$42 million to contribute to construction of an ethylene oxide and ethylene glycol plant located in the Santa Rita industrial area of Zulia state.

The loan agreement was signed in CAF headquarters by CAF President & CEO Enrique García, and RESILIN general manager José A. Baptista.

The RESILIN company is owned by Pequiven (48%), Grupo Zuliano (28.5%), CETIC of Canada (19.5%), and Latino Sociedad Financiera (4%).