Ferrum I

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 Ferrum S.A. de Cerámica y Metalurgia (“Ferrum” or the “company”), https://www.ferrum.com/  is Argentina's largest producer of ceramic sanitary ware. The company mostly supplies the local construction market, and exports about 5% of its sales. Ferrum has two processing plants, located in Pilar and Avellaneda, both in Buenos Aires Province, and a Medium-density fiberboard  (MDF) panels facility in Santa Fe province. The Pilar plant is fully dedicated to mass production of relatively low-value added products; and the Avellaneda plant produces sanitary ware and acrylic bathtubs; and acts as Ferrum's main distribution center. Key processes in both plants include preparation of raw materials by mixing and grinding, mold preparation, casting, shaping, drying, glazing, firing, product finishing and storage. The process is labor intensive and there is a workplan to upgrade the processes and enhance efficiency.The proposed investment comprises an A loan of up to USD16 million from IFC's own account to Ferrum to support the company's investment program to be implemented during the next two years. The large parts of the investments will take place in the Pilar plant, including expansion and upgrade of machinery. In addition, some productivity investments in Avellaneda plant will be part of the investment plan (the “project”).