2010-03-01

AF Consulting acquires Financiera Internacional

Spanish firm AF Consulting has acquired Colombian finance company Financiera Internacional after negotiating a share deal with the Venezuelan company Fondo de Garantias Bancaria de Venezuela (Fogade). Thus, Fogade sold a 90% shareholding in the firm Financiera Internacional. As of 31 December 2009, Financiera Internacional equity stood at COP 30.97bn (EUR 11.71mn USD 15.97mn), and analysts therefore consider that the 90% stake was sold for at least COP 28bn. As well as the share operation, it is reported that Financiera Internacional will receive COP 8bn in capital in order to participate in new market areas, such as international financial services and capital markets, amongst others.

Publication: Esmerk - News monitoring
Provider: Esmerk
March 1, 2010

Avianca Taca to buy 100% of Aerogal

Air carrier Avianca Taca has announced the acquisition of Ecuadorian air carrier Aerogal. 80% will be acquired by Avianca and 20% by Kingsland Holding Limited, the owner of Taca. Avianca will pour USD 7.20mn (EUR 5.28mn) into Aerogal. The Ecuadorian airline has a fleet of 12 aircraft. It will receive two new Airbus 320s in the second half of 2010. It will pay for them with a USD 54mn loan it received from Corporacion Financiera Nacional (CFN).

Publication: Esmerk - News monitoring
Provider: Esmerk
March 1, 2010

2010-02-22

Enka sells products into new markets in 2009

Colombian polymers and polyester synthetic fibres manufacturer Enka managed to reduce its losses in 2009, standing at COP 10.87bn (EUR 4.17mn USD 5.62mn), in comparison to 2008 (COP 27.0bn) because the company broke into new markets, especially in Europe. In addition, the firm improved operations, increased net revenues and obtained additional revenues because of the exchange rate with the US dollar.

Company Ebitda stood at COP 2.94bn in 2009, compared to COP 2.76bn in 2008. The company diversified and increased exports in 2009, compared to the previous year, by selling chemical products and textiles to new clients in Brazil, Mexico, Argentina, the US, Canada, France, Spain, Portugal, Italy, Netherlands, Belgium, Denmark, Norway, the Czech Republic and Turkey.

Publication: Esmerk - News monitoring
Provider: Esmerk
February 22, 2010

2010-02-03

Biocom to invest USD 12mn in tyre-recycling plant

Italian-Colombian company Biocompania (Biocom) has announced plans to invest USD 12mn (EUR 8.59mn) in a new tyre-recycling plant in La Tebaida, in the Colombian department of Quindio. The new 10,000m2 facility will become operational within three months. It will hold the capacity to process 60,000 tonnes of tyres per year, although it will initially operate at only 20% of its full capacity.

Some of the products Biocom will produce by recycling tyres include rubber dust which can be used in the elaboration of certain types of asphalt. It is estimated that around 5mn tyres, including motorbike tyres, are disposed of every year in Colombia.

Publication: Esmerk - News monitoring
Provider: Esmerk
February 3, 2010

2010-01-22

Aires to launch several new routes this quarter

Colombia's Aires is planning to launch six new routes, including three to the USA, over the next two months as it places additional Boeing 737-700s into service.

Aires now operates seven Boeing 737-700s on domestic trunk routes and to Fort Lauderdale in Florida. An Aires spokesman says an eighth 737-700 has arrived in Colombia and should enter service later this month. He says Aires is scheduled to take two more 737-700s later this quarter, giving it a fleet of 10 737-700s by the end of March.

ATI first reported in October Aires had committed to expand its 737-700 fleet to 10 aircraft through new lease deals with AWAS and Mitsubishi.

The Aires spokesman says some of the additional capacity will be deployed on Aires' new US operation. The carrier launched services to the US in November with one daily flight on the Bogota-Fort Lauderdale route. It already has traffic rights for several other US routes including Barranquilla, Cali and Cartagena to Fort Lauderdale and Bogota to New York JFK.

The spokesman says Barranquilla-Fort Lauderdale and Cali-Fort Lauderdale will be Aires' next US routes. "We're planning for February but we have no date yet," he tells ATI.

He adds both routes, which will be served with one daily 737-700 flight, will likely begin in the later portion of February as Aires has not yet begun selling tickets on either service. Typically Aires begins ticket sales 20 days before a route is launched.

The spokesman says Aires is also now aiming to begin service on the Bogota-New York JFK route in March. "We're working with the airport now to get the certifications," he says.

The spokesman says Aires is also looking at beginning 737-700 service from Bogota to Aruba in March but again a launch date has not yet been set. Aires already serves Aruba from Barranquilla with Bombardier Dash 8s. The Bogota-Aruba route represents the first of several potential Caribbean services from Bogota using newly acquired 737s.

Aires also secured last year traffic rights to serve Bogota-Sao Paulo but the spokesman says the planned 737-700 service to Brazil will not begin until the second half of 2010.

Domestically Aires is also expanding with new routes in February from Bogota to Riohacha and Valledupar in northeast Colombia. The spokesman says a schedule and launch date for these services have not yet been set.

Aires has been expanding its domestic network rapidly over the last several months as 737-700s were placed into service. Its last new domestic route, Bogota-Cucuta, was launched last month.

Cucuta was the last of Colombia's large cities to be added to Aires' network. The carrier is also now operating 737-700s into several smaller cities. Riohacha, for example, is a relatively small destination currently only served according to Innovata with one daily Fokker 100 flight from Bogota by Avianca.

Bogota-Valledupar is now only served by Avianca with three daily Fokker 100 flights, according to Innovata. Valledupar, however, is already served by Aires from Barranquilla with one daily Bombardier Dash 8 flight.

One year ago Aires was a regional carrier only operating turboprops on thin domestic routes. With the 737-700s Aires has been converted into a low-cost carrier competing with Colombia's two main carriers, Aero Republica and Avianca, on domestic trunk routes.

Aires also has been looking at leasing 70-seat Dash 8 Q400s to supplement its 37-seat Q200s. The spokesman says the carrier still hopes to have two Q400s in service by the end of March and currently has a team overseas inspecting specific aircraft.

According to Colombian CAA data, Aires transported 1.3 million domestic passengers through the first 11 months of 2009, a 15% increase over the same period the previous year. For the 11 months Aires had a 15% share of the domestic market, putting it number three behind Avianca and Aero Republica. But for the month of November, it had 18% share of the market, putting it just head of Aero Republica.

Publication: Reed Business Information - Air Transport Intelligence
Provider: Reed Business Information, The Flight Group
January 22, 2010

2009-12-08

Grupo Bolivar aims to expand internationally

Colombian financial conglomerate Grupo Bolivar, which has interests in the insurance and banking sectors, is planning to expand its presence in Latin America and the US. The company has been entering new markets such as Costa Rica, Venezuela, Ecuador and Panama, while it is considering to arrive in Argentina, Chile or Peru.

For instance, its bank Banco Davivienda has a subsidiary in Panama and US, which Grupo Bolivar intends to expand and improve its services. In Venezuela, the company also operates a life insurance company together with local investors.

Publication: Esmerk - News monitoring
Provider: Esmerk
December 8, 2009

Sodexo celebrates 15 years of activities in the country

French food catering and voucher company Sodexo has highlighted the position of its business in Colombia, where it is commemorating 15 years of activities. Sodexo Colombia is among the ten leading firms generating new jobs in the country. It has created more than 9,000 direct jobs in 208 different towns. Local firm Grupo de Inversiones Surameriana holds a 35% share in Sodexo Colombia

Publication: Esmerk - News monitoring
Provider: Esmerk
December 7, 2009

2009-11-09

Smitco asks IFC for US$15.8mn to remodel Santa Marta container terminal

Colombia's Santa Marta International Terminal Company (Smitco) is requesting a US$15.8mn loan from the International Finance Corporation (IFC), the financial entity reported on its website.

The project involves the refurbishment and operation by Smitco of a container terminal inside the Santa Marta port.

The initiative involves an estimated total investment of US$50mn to refurbish two berths with a combined total length of 322m; the installation of two post-panamax ship-to-shore cranes, four gantry cranes, and other handing equipment; and the demolition of existing buildings and expansion of the container yard from 4 to 8ha.

Upon completion, the terminal's container handling capacity will increase from 120,000 TEUs to 300,000 TEUs.

Santa Marta is Colombia's third largest port and is located 1,139 km north of capital Bogota on the Caribbean coast.

Smitco is approximately 51% owned by Sociedad Portuaria de Santa Marta (Sprsm) and approximately 49% owned by an indirect subsidiary of privately held US firm Carrix.

Sprsm operates Santa Marta port under a concession ending in 2033 and is owned by private investors, Magdalena department, the Santa Marta municipality and the transport ministry.

Publication: Business News Americas - English News
Provider: Business News Americas
November 9, 2009

2009-10-27

Acesco set to start-up new HDG line in January

Colombian cold rolled and hot-dip galvanized coil producer Acerías de Colombia (Acesco) expects to commission its new 85,000 tpy HDG line in January, and is already targeting a total HDG capacity of 250,000 tpy. The line will be the company`s second, with the first able to produce up to 140,000 tpy, president Carlos Arturo Zuluaga told MB on the sidelines of Ilafa`s 50th Latin American annual steel conference in Quito, Ecuador. Acesco has also a cold rolled coil line with installed capability of 250,000 tpy.

"At the moment, output is strong, following a demand recovery which started a few months ago after the world economic crisis that affected the Colombian market in late 2008," Zuluaga said. Two months ago, Acesco started a 35,000 tpy prepainting line at its works reflecting optimism in the local market. The line was ready late last year, but the company delayed the start-up until market conditions improved, said Zuluaga.

Acesco still imports hot rolled coil from Brazil`s ArcelorMittal Tubarão and Japan`s Nippon Steel, but it also receently started sourcing hot rolled coil from Japan`s JFE. "We are also negotiating to buy HRC from Usiminas," the executive said. Purchases of hot rolled coil from Venezuela`s state-owned steelmaker Sidor have decreased this year following technical and political problems at the mill. Acesco also controls two plants in Costa Rica: HDG maker Galvatica and structural and welded pipes producer Tubotico, each operating at close to their respective 200,000 tpy capacities, Zuluaga added.

Publication: Metal Bulletin
Provider: Metal Bulletin com
October 27, 2009

2009-10-08

Avianca eyes up Central American market

Colombian airline company Avianca is looking to establish new partnerships in order to place the company firmly on the map in Central America. To this end, Avianca has announced an agreement with Central American airline company Taca International Airlines (Taca). Moreover, Avianca acquired Brazilian airline Ocean Air at the beginning of September in a deal worth USD 200mn (EUR 135.86mn). Businessman German Efromovich is the head of Grupo Sinergy, a conglomerate which owns Avianca and SAM, and which is the main shareholder in Ecuadorian firm Vipsa as well as Colombian firms Tampa Cargo and Helicol. Efromovich and Avianca president Fabio Villegas called a press conference on 7 October 2009 in which they envisage gaining an increasing share of the Latin American market.

Publication: Esmerk - News monitoring
Provider: Esmerk
October 8, 2009

2009-10-06

Marriott to open first five-star hotel

Marriott International is set to inaugurate its first five-star hotel in Colombia, in Bogota in particular, on 6 October 2009. The new hotel will form part of the Bogota Corporate Center, which also encompasses an office building. The new Marriott hotel boasts 239 rooms in ten floors and will be operated by Real Hotels and Resorts, a subsidiary of Grupo Poma of El Salvador. Moreover, Marriott International plans to open a new 265-room hotel in Bogota in May 2010.

Publication: Esmerk - News monitoring
Provider: Esmerk
October 6, 2009

2009-09-29

Toyota may enter new segment

Japanese car manufacturer Toyota has announced that it is assessing the possibility of entering new segments in Colombia. The firm led the segment for pick-up trucks in August 2009, driven forward by its innovative portfolio and a cut in prices of around 5% on average. However, Toyota has seen its market share drop by 2% so far in 2009. In order to offset this fall, the firm has introduced post-sale and marketing strategies as well as extending the warranty period for its vehicles.

Publication: Esmerk - News monitoring
Provider: Esmerk
September 29, 2009

2009-09-27

Ospinas will build a new hotel in Northern Bogota

Colombian construction company Ospinas will build a hotel in Bogota, Colombia, tendering for the project will be launched in February 2010 with construction planned for mid-2010. The company has been debating whether to participate in this sector for the last four years and is studying three different possibilities for hotel developments. The project is already advanced in terms of securing the 2,500 m2 plot in Northern Bogota and construction will take approximately 18 months. Ospinas is also looking at opportunities in other cities such as Cucuta.

Publication: Esmerk - News monitoring
Provider: Esmerk
September 25, 2009

2009-09-19

Hidrosogamoso project brings ICT on board for construction role

The massive Hidrosogamoso project being put together by Colombian energy-generation group Isagen has lurched forward another step with the group signing a contract with Grupo ICT for Peso$178.12bil. ICT has been encharged with the construction of works related to the Proyecto Hidroelectrico Sogamoso. Specifically, it will be responsible for the deviation tunnels, the access tunnels, excavation and foundations for certain areas of the plant amongst other things.

Publication: SABI - Business News
Provider: South American Business Information
September 19, 2009

2009-09-11

Brookfield sets up $400Mn Colombia Fund

Brookfield Asset Management, Canada's asset manager focused on property, power, and other infrastructure assets, is launching a USD 400 million Colombian fund to invest in the region’s infrastructure. The PE firm has joined a wave of foreign institutional investors entering the Andean nation. It also announced the fund's first closing at USD 320 million, making it the largest PE and infrastructure fund ever launched in Colombia. Investors that have committed in the first closing include Colombian institutional investors and Brookfield, the latter committing up to 30 percent of the total.

Brookfield has been monitoring a number of attractive targets in Colombia in the past one year. The newly generated interest of international companies in Latin America is due to the global growth together with sound a fiscal policy, which contributed to the economic stability in the region. The banking sectors of many South America countries withstood the storm caused by the global financial crisis.

Publication: Evalueserve-EmergingMarketsNOW
Provider: Evalueserve India Ltd.
September 10, 2009

2009-09-08

Plans to produce fine wood from coffee trees

The association of coffee farmers in Colombia, Federacion Nacional de Cafeteros (Federacafe), is promoting a project to produce fine wood from coffee trees. The project is supported by the Andean Development Corporation (CAF) and the Inter-American Development Bank (IADB) and is aimed at bolstering and diversifying the local coffee industry.

At present, coffee plantations in Colombia span around 1.1mn hectares, which could produce around 4mn cubic metres of processed wood. Domestic demand for wood in Colombia is estimated at around 10mn cubic metres per year, with 7mn of them being used by paper companies and 3mn for carpentry. The project also encompasses the production of some 2.8mn cubic metres of ethanol by using wood shavings from coffee trees.

Publication: Esmerk - News monitoring
Provider: Esmerk
September 8, 2009

Investments in civil engineering projects up by 42% in Q2

Figures from the national statistics office, Dane, show that total investments in civil engineering works experienced a year-on-year growth of 42% in Colombia in the period between April and June 2009. The group of ports, dams, and other dredging-related projects recorded an increase of 101.5%, whereas energy and mines posted a 42% hike. Meanwhile, Dane has added that investments in roads, bridges and similar structure climbed by 28.5%, on the same period in 2008

Publication: Esmerk - News monitoring
Provider: Esmerk
September 8, 2009

2009-09-01

Pacific Rubiales to register on Bolsa this time next month

Pacific Rubiales has set a date on its entry onto the Colombian Bolsa de Valores or rather a period in which it will occur, between September 15 and September 30, 2009. However, the firm is only set to register for now and not emit shares.

A partner of Ecopetrol, Pacific Rubiales had been expected to register last month but has been delayed by the Ministerio de Hacienda and the Bolsa itself, working together on new regulations for foreign values. The firm announced its intention back in February.

Publication: SABI - Business News
Provider: South American Business Information
September 1, 2009

2009-08-31

Avianca issues bigger bond than expected

Avianca of Colombia has issued bonds to the tune of Peso$500bil via the Bolsa de Valores de Colombia (BVC), having only planned initially to emit Peso$300bil. The airline could indeed have sold bonds for a total of Peso$692.48bil such was investor interest.

The president of Avianca, Fabio Villegas has said that the operation will give the airline new impetus to continue with the overhaul process it has embarked upon. The issue was split into three tranches, one running for five, another for seven and the third for ten years at 5.5%, 6.3% and 6.69% respectively. Tranche one came to Peso$75bil; tranche two, to Peso$158.63bil; and tranche three, to Peso$266.37bil. The issue received a rating of AA+ from Fitch Ratings, was structured by ImasI and was placed by Interbolsa.

Publication: SABI - Business News
Provider: South American Business Information
September 1, 2009

2009-08-29

Satena to start online ticket sales soon

Major-General of the Fuerza Aerea Colombiana (Colombian Air Force), Jose Javier Perez Mejia has been made the new president of Satena. Perez Mejia promises aggressive and enthusiastic attempts to turn a difficult situation around. Passenger numbers fell by 8% in the first half of 2009 for Satena. The new president wants the airline to be best known for high levels of service. He notes that Satena's bills are mainly in dollars even though its income is not dollar-based and adds that it is a shame that Eldorado airport in Bogota is in a mess at present due to renovation and modernisation work being carried out by Opain.

Perez Mejia explains that the closure of runway 1B Norte has seriously affected Satena operations.A priority for Satena in the second half of the year is the opening-up of new sales channels. Inside a month, the airline will be offering Internet ticket sales, a process in which US$1mil has been invested. The turnover for the group in the first semester of 2009 came to Peso$135bil and the goal for the whole of this year is a very attainable Peso$250bil.

Publication: SABI - Business News
Provider: South American Business Information
August 29, 2009

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