The company is majority owned by the Riefkohls, a family of German immigrants, and about 45% by Graymont (from Canada), which is North America’s third-largest lime producer and was founded in 1948 near Vancouver, British Columbia, Canada. Graymont is still privately-held and majority owned by the Graham family.

The proposed financing package will consist of:

- an up to $30 million corporate A Loan primarily to assist Calidra in the modernization of its operations in Mexico; and
- an up to $15.0 million standby facility.

- Modernization of production facilities:

The first component of Calidra’s investment program has an estimated cost of $ 75.5 million and comprises:

- the modernization and replacement of some of its existing production facilities for about $50.5 million; and
- capital expenditures for about $25 million for the modernization and environmental upgrade (including energy efficiency investments) of production facilities resulting from the recent acquisition of a competitor with operations in the western Mexican State of Jalisco that includes the total replacement of old furnaces.

In addition, IFC is expected to provide additional assistance through IFC’s Cleaner Production program to coordinate and partially fund a professional study to:

- investigate low-cost, reliable energy supply options including wind, biomass and cogeneration; and
- identify energy efficiency projects in the operation to reduce usage and cost.

- South-South expansion:

The second component of the proposed financing package is aimed at providing Calidra with financial flexibility to expand into other developing markets with unsatisfied demand by existing suppliers and substantial opportunities to rise industry standards.

45.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	45.0
Equity

* These investment figures are indicative

Calidra operates twenty plants across Mexico and one in Honduras. Nine of its plants comprise quarrying, calcination, hydration and packaging, 11 plants are combined hydrators and packaging operations, and one paper bag manufacturing plant. Calidra’s modernization plans will include several of its facilities, primarily those that were recently acquired and are located in the Mexican State of Jalisco.

The proposed corporate financing package would be Calidra’s first loan for corporate uses as all its previous long-term loans, including IFC’s were tied to specific investment projects. A good combination of sufficient available credit amounts, long tenor and reasonable costs to support its corporate financing needs will provide Calidra with the financial flexibility to undertake the investment program which is anticipated to contribute to:

- Immediately improve energy efficiency and mitigate environmental footprint:

Calidra’s investment program includes shutting down six obsolete, inefficient and highly pollutant kilns (part of a recent acquisition) and replacing them with state-of-the-art technology.

- Raise industry standards in terms of health and safety, environment, energy and cost efficiency. With the implementation of environmental, health, and safety (EHS) management systems and procedures, the programs to mitigate EHS impacts, the assignation of dedicate personnel to handled these aspects a at corporate and plant levels as IFC requirement, and the initiatives to optimize raw materials, energy and water consumption, Calidra is helping to improve the air quality and raise the overall EHS performance of lime extraction and production in Mexico. The recently acquired facilities are representative of the operations of the rest of the players in the industry (i.e. old technology, minimum environmental, health and safety programs and goals.)

- Increase usage of lime of lime for industrial usage:

Calidra produces a basic industrial product that supplies the construction, industrial and agricultural/food processing industries. Calidra is increasingly targeting sectors such as glass making, water purification and treatment, thermal plants, and food and pharmaceutical industries, which can benefit from the greater use of lime but which in Mexico have historically used comparatively little lime. Through a more efficient production of lime, several industries will benefit by having access to a higher quality product at competitive prices.

Through the proposed investment, IFC will assist a long-term client in remaining cost efficient through the implementation of a modernization program of its production facilities, which will also result in improving industry standards. Moreover, through IFC’s Cleaner Production program is expected to coordinate and support a professional study to:

- investigate low-cost, reliable energy supply options including wind, biomass and cogeneration; and
- identify energy efficiency projects in the operation to reduce usage and cost.

In addition, IFC will support Calidra, medium-sized local company, as it invests in other developing countries, where IFC is familiar with local business conditions and can provide some comfort. IFC''s financing will serve as a catalyst for the company to rise additional funding, if necessary, for its international acquisition.

This is a Category B project, according to IFC’s Environmental and Social Review procedures because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The following potential environmental, health and safety, and social issues were analyzed:

- Corporate E&S capability;
- Raw materials and resource management;
- Air emissions and wastewater management;
- Quarry exploitation and reclamation programs;
- Solid waste management and disposal;
- Fire protection and emergency response;
- Occupational health and safety;
- Logistics and transport; and
- Community relations and development initiatives.

Calidra will implement the actions listed in the Environmental and Social Action Plan (ESAP) listed in the Environmental and Social Review Summary and it will operate and design any existing and new projects in accordance with the applicable IFC Performance Standards and Environmental Guidelines.