Tecnologia em Componentes Automativos S.A.

Puerto Seco, S.A., of Argentina invested $15 million of equity, and Lloyds Bank of the United Kingdom lent $13.4 million, toward the acquisition and modernization of an automotive parts factory in Brazil. The project enterprise, Tecnologia em Componentes Automotivos, Ltda. (TCA), produces wire harnesses for Ford and Volkswagen vehicles assembled in Brazil under supply agreements with the two automobile manufacturers. MIGA guaranteed the loan (for $12 million in coverage) against currency transfer, expropriation, and war and civil disturbance risks and aof the equity (for $3 million) against the risk of currency transfer.

Puerto Seco, incorporated in 1986 in San Juan, Argentina, specializes in the manufacture of wire harnesses. It acquired TCA, located in Pernambuco State, in 1995 when Ford do Brasil, S.A., and VW do Brasil, S.A., decided to revert to car assembly as independent entities and dissolved their joint venture.

The plant will modernize its production to provide Ford and VW with a high-quality product at an internationally competitive price. TCA will introduce, for the first time in Brazil, technology based on mobile workstations.