News

13 February 2023

IFU IS SUPPORTING PAPER RECYCLING IN ECUADOR

The Surpapel Group is a leading producer of paper and cardboard boxes in Ecuador. A major part of the products is based on paper waste that is collected locally and recycled. IFU is providing loan financing of just above DKK 100 million for the Group to continue its growth and further reduce its carbon footprint.

Reducing resources by creating circular business models is an important element in tackling climate change and reducing global warming. In Ecuador, one of the leading producers of paper and cardboard, the Surpapel Group has created a business that strives to maintain a responsible supply of raw materials made from recycled elements.

The Surpapel Group evolved from a traditional paper producer to a modern company over the last decade. They modernised production facilities, added a paper mill, and created a unit for collecting paper waste. Today, around half of the production is based on locally sourced and recycled raw materials.

Financing the green transition

IFU is providing loan financing of DKK 106 million to the Group’s cardboard material manufacturer Surpapelcorp and finished box manufacturer Procarsa. The proceeds will enable the Surpapel Group to further grow and continue its investment in increasing local paper waste collection and improving energy efficiency, thereby reducing its carbon footprint.

“Surpapel is an exciting business, that has managed to transform from a traditional paper producer to a circular business model that supports the green transition in Ecuador. This is a solid match with IFU’s impact priorities of creating green, just, and inclusive societies, and we are happy to help the company in its continued development.”

Peter Hardgrove, Investment Manager at IFU.

The financing has been provided on behalf of the Danish Green Future Fund that was set up by the Danish state to support the green transition in Denmark and abroad.