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Press Release

Friday, August 11, 2006

U.S. Small Business Uses OPIC Financing to Expand Paper Manufactory in Mexico

WASHINGTON, D.C. – A U.S. small business will use a loan supported by the Overseas Private Investment Corporation (OPIC) to expand its toilet/tissue paper and napkin manufacturing operations in Mexico, increasing production capacity by 90 percent and generating dozens of new jobs in the process.

OPIC will provide a guaranty for a $10 million loan to Corporativo Papelero y de Suministros Basicos (COPASBA), a small business owned by two entrepreneurs who are U.S. citizens, to finance the expansion of its manufacturing operations in Puebla, Mexico. The expansion will include the purchase of new paper-converting equipment and the construction of a new warehouse and manufacturing facility. The loan was made by WorldBusiness Capital, Inc., a commercial finance company specializing in loans to small and medium-sized enterprises (SMEs) operating in emerging markets.

The expansion will enable COPASBA to finance new toilet paper and napkin production lines and modify existing production lines, resulting in an increase in production capacity of approximately 90 percent.

The project will also generate at least 60 new jobs in Puebla, half of them in sales and management positions. COPASBA provides benefits to its employees that exceed local requirements, such as three-month maternity leave, day care and preschool for employee children, daily meals in a company cafeteria, and transportation to and from the company facility.

“This project will facilitate the growth of a U.S. small business which is making a valuable contribution to the Mexican economy, enhancing its production capacity and generating high-skilled jobs in the process,” said OPIC President and CEO Robert Mosbacher, Jr. “OPIC is pleased to support a project with so many developmental benefits.”

COPASBA was established in 1995 and has since become Mexico’s fifth-largest producer of toilet paper and napkins. Through a network of distributors and wholesalers, COPASBA reaches all regions of the country, and its customers include supermarket chains and convenience stores.

WorldBusiness Capital has successfully closed loans in emerging markets throughout the world. In 2003 OPIC entered into a cooperative agreement with WorldBusiness Capital to expand support for SMEs investing overseas and enhance the activities of OPIC’s Small Business Center.

According to Brett N. Silvers, WorldBusiness Capital’s CEO, “Our recent loan to COPASBA, a fast-growing U.S.-owned small business that makes products for Mexican consumers, highlights the extraordinary value of OPIC’s programs to U.S. small businesses and entrepreneurs seeking opportunities to expand in international markets.”


OPIC is the U.S. Government’s development finance institution.  It mobilizes private capital to help solve critical development challenges and in doing so, advances U.S. foreign policy.  Because OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in emerging markets catalyzing revenues, jobs and growth opportunities both at home and abroad.  OPIC achieves its mission by providing investors with financing, guarantees, political risk insurance, and support for private equity investment funds.

 

Established as an agency of the U.S. Government in 1971, OPIC operates on a self-sustaining basis at no net cost to American taxpayers. OPIC services are available for new and expanding business enterprises in more than 150 countries worldwide. To date, OPIC has supported nearly $200 billion of investment in over 4,000 projects, generated $74 billion in U.S. exports and supported more than 275,000 American jobs.