PAZ DEL RIO STEEL

closed

The Acerias Paz del Rio Steel Project finances the foreign exchange cost of the the major portion of the steel mill operated by the Acerias Paz del Rio company. The company is the successor to a quasi-governmental corporation established in 1947 by the Colombian goverment to construct and operate a steel mill. The Bank has been asked to finance these principal items of the project: the rationalization and improvement of present facilities at the mill to bring about increased production through better utilization of the capacity of the existing plant; improvements in the facilities for preparation of raw materials; and full utlization of plant generated scrap. The company also plans to install new facilities to broaden the range of its production and to improve product quality. Finally, it plans to replace obsolete heavy mobile equipment and to construct additional housing and community facilities at Belencito in order to reduce the present high rate of turnover among supervisory and professional personnel and skilled workers.