IDB Invest grants $66.5m loan to Mexico’s Arzyz Metals
IDB Invest, part of the Inter-American Development Bank (IDB), has provided a $66.5 million financial package to Mexican company Arzyz Metals.
The loan is designed to increase the company’s production capacity of aluminum alloys through the construction of a new plant located in the municipality of Ciénega de Flores in the state of Nuevo León.
Arzyz Metals is one of the largest companies engaged in aluminum manufacturing and the commercialisation of non-ferrous metals for various industries in Mexico.
The financing will contribute to job creation in the construction and operation phases of the new plant, will enable employee training, improve the company’s productivity and reinforce operations with its value chain, which is comprised largely of micro, small and medium-sized enterprises (MSME) providers, IDB Invest said in a statement.
The project includes investment in two production lines, in complementary equipment and in infrastructure to increase Arzyz Metals’ current production capacity. These will increase the efficiency of the aluminum recycling process and allow Arzyz Metals to meet part of the market demand not currently covered, and which will help Arzyz Metals position itself as a leading local supplier, with shorter response times, especially for the automotive and mechanical industries.
The financial package has an eight-year tenure and consists of a $46.5 million IDB Invest loan and the mobilization of a $20 million loan from the China Co-financing Fund for Latin America and the Caribbean.
IDB Invest’s participation in this operation promotes the circular economy through aluminum recycling. Arzyz Metals will obtain the maximum benefits of the recovered materials through more socially inclusive and environmentally sustainable solutions.
