WASHINGTON, D.C., October 28, 1998 --- The International Finance Corporation is investing US$20 million in Latvia's Dauteks, a leading nylon filament producer in Eastern Europe and one of the largest companies in Latvia with over 3,000 employees.
IFC's investment, which comprises a US$15 million loan and equity of US$5 million, will be used to renovate the company's factory in Daugavpils, Latvia.
Dauteks will use the investment to streamline production lines, reduce operating costs, improve quality, and increase production. State-of-the-art technology will be installed, and IFC will help the company improve its monitoring of environmental and safety standards. Dauteks expects to export over 90 percent of its production.
The main sponsor, the Tolaram Group of Singapore, will own 75 percent of shares in Dauteks, and IFC will own 15 percent of the shares. The Latvian State and the Development Bank of Singapore are also shareholders in the company.
IFC, part of the World Bank Group, encourages economic growth in the developing world by financing private sector investments, mobilizing capital in the international financial markets, and providing technical assistance and advice to governments and businesses.
