Investment

CAPEX: 19 MM USD

OPEX: 225 MM USD

TOTAL: 244 MM USD

Financial Indicators

IRR: 18.70%

Recovery Time: 7 years


Management Model

The investor builds and operates the plant.

Benefits for the investor

  • Through the signing of an investment agreement with the Ecuadorian government, recorded as a public deed, reception of benefits are guaranteed
  • Stability on tax incentives up to 15 years, renewable once (maximum validity 30 years)
  • The company may request total or partial reduction of duties for any capital goods imported
  • Exemption of foreign exchange taxes on financing operations
  • Established conflict resolution mechanisms


Objective

To implement and develop the chain of value of dairy products through the industrialization of whey, preparation of concentrate or isolated high added value dairy protein intended for use in the food industry.


Project Details

Investing on a plant for the industrialization of buttermilk (whey), with the possibility to manufacture two product categories: demineralized whey powder; protein concentrates with purity levels of up to 80%.


Technical description of the Project

The pre-feasibility and feasibility study for the use of dairy, derivatives and sub-products is available. It was conducted by Consorcio Lechero CLAC, intended for the potential implementation of an industrial dairy plant. The total amounts of investment were divided into the following time periods:

  • Preliminary investment: acquisition and adaptation of the land in the Industrial Park located in the Ibarra Canton
  • Initial investment: equipment, land and construction of the plant
  • Mid and long-term investments: increase the plant’s capacity in years 7 and in 11 years its operation


Market

Ecuador imports nearly 100,000 products made from whey protein, as well as 500,000,000 units of soy cake, of which nearly 300,000,000 could be replaced with whey protein.


Regulatory Framework

Organic Code of Production, Trade and Investments, COPCI.


Location

  • Province: Imbabura
  • Canton: Ibarra
  • Parish: San Miguel