Productora de Envases Crown del Ecuador S.A.
MIGA has provided $193,500 in investment insurance to Prodenvases Crown S.A. from Colombia for their $215,000 equity investment in Productora de Envases Crown del Ecuador S.A. MIGA’s coverage is against the risks of currency transfer restriction, expropriation, and war and civil disturbance for a period of up to seven years.
The investor is a Columbian manufacturer, Prodenvases Crown, specializing in the production of metallic containers throughout the region. Prodenvases Crown S.A.’s investment is financing a metallic paint can assembly line in Guayaquil, Ecuador. The project enterprise, Productora de Envases Crown del Ecuador S.A., will manufacture, assemble, and commercialize metal and plastic cans for the industrial and food sectors in Ecuador. Staff from Colombia installed the necessary equipment for the project, which is expected to deliver technology transfer benefits. From July 2005, when the plant began operations, to the end of the year, sales reached $441,000. Sales for 2006 are expected to reach $1 million.
The project represents Prodenvases Crown S.A.’s seed investment in Ecuador and is likely to lead to further expansion if this project yields expected benefits.
MIGA’s support for the project is in line with the World Bank Group’s Country Assistance Strategy for Ecuador, which aims to lay the foundations for diversified and sustainable economic growth in the country, and increase opportunities and access to economic resources.
The project was underwritten through MIGA's Small Investment Program (SIP).