Lacteos Toni

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Tonicorp is one of the largest agribusiness companies in Ecuador. Through its subsidiary Industrias Lacteas Toni SA (“ILT”), Toni is the leading dairy company in Ecuador. The Group processes milk purchased from +2,400 farmers into a wide range of dairy products (UHT milk, flavored milk, cream, butter, cheese and yogurt) and produces bottled water, energy drinks and fruit beverages from concentrate under the licensed ‘Tampico’ brand. In all product categories Toni commands between 50-70% market share. The Group also owns 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 ILT’s products.With a production capacity of ~200,000 liters of milk/day, Toni operates a plant located in an industrial area of Guayaquil. This plant, originally designed in the early 1970s to produce 7,000 MT/year of yogurt, is currently producing +30,000 MTs. Although the Group has managed to grow its capacity over time in order to keep up with increasing demand, the plant is currently cramped, having reached a point where there is no more space to grow, or changes to the layout would derived in loss of efficiencies. Therefore, ILT is currently planning to move the plant to a new site (the “Project”). This will allow increasing production capacity, generating efficiencies through better layout, newer equipment and improving E&S management.