Lacteos Toni II

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Tonicorp is one of Ecuador’s leading agribusiness players, and the country’s largest dairy value added products processing company. Tonicorp processes milk purchased from 3,500 farmers into a wide range of dairy products (yogurt, flavored milk, UHT milk, and cream cheese), non-dairy value-added products (oatmeal, jelly), and beverages (isotonic drinks, and iced teas). In all product categories Toni commands between 50-70% market share. The Group also owns Heladosa S.A., an ice cream producer under the Brand Topsy; Plasticos Ecuatorianos SA (“Plasticos”), a packaging plant that supplies the dairy business and sells to 3rd parties, and Dipor SA (“Dipor”), which distributes all of Toni’s products.The project entails to build a new dairy processing plant in Guayaquil. Specifically, the investment program consists of: (i) relocating current operations to a new, 58,904 mts2, state of the art processing facility; (ii) installing new equipment from leading suppliers that will reduce production costs and maximize output through automation, improved process efficiency and reduced occupational hazards; (iii) increasing storage and production capacity from about 180k liters per day to more than 400k liters per day with the possibility to additionally expand to 600k liters per day; (iv) developing distribution centers to tap nearby markets and smaller towns; (v) funding incremental working capital needs.