Proteak gets further financial backing for its MDF plant in southern Mexico

The Mexico City-based company has signed a US$10m investment deal with the development finance firm Finnish Fund of Industrial Cooperation (Finnfund). It delivered the first tranche of the capital injection for US$7.5m in early October.

Proteak, which grows teak and eucalypt forest plantations, is constructing a green field 280,000m3/year MDF panel plant in Huimanguillo in Mexico's south eastern Tabasco state. The US$200m project, equipped with a Dieffenbacher continuous press board line, is scheduled to start up in the middle of next year.

Finnfund, which provides long-term risk capital for private projects in emerging markets, focuses on projects in the forestry and energy sectors. The Mexican scheme has already attracted US$93m in German syndicated bank loans guaranteed by the German government.

Commenting on the new investment, Proteak president Hector Bonilla said: "We are very proud to have such an experienced, world-class partner. The addition of Finnfund to our team validates, once more, the strength of our MDF project and of Proteak as a reliable, trustworthy partner."