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Latin America Investment News on Viva Tropical

First Company Enters Nicaragua’s Free Zone Regime

Article Summary:

Diamond Recycling, the first of its kind to come under the free zone regime of Nicaragua, will invest $10 million into a country-wide recycling plant. The free zone regime gives special economic incentives to relocating or setting up businesses in Nicaragua.

Photo Credit: El Nuevo Diario

Original Article Text From El Nuevo Diario:

New investment in free zones

Diamond Recycling is the name of the Honduran company that provides installed soon in Nicaragua with an investment of approximately $ 10 million. This was the first company of its kind to come under the free zone regime, and was announced by the executive director of the Nicaraguan Association of Textiles and Apparel, Anitec, Dean Garcia.

“Last week I met with Honduran investor, he wants to devote to recycle all materials: solids and liquids (in Nicaragua),” said Garcia.

The company has plants in the output to Olancho, Honduras, and weekly exports 25 tons of aluminum, plastic and a 80 considerable amount of iron, mainly the United States, India, Korea, Japan and China.

Garcia said the company would be commissioning the reprocessing of textile materials. “Now, next week will be making his second voyage of exploration in Nicaragua to see where the plant would be located and meet with ProNicaragua”, she said.

When asked about the issue the executive director of the Investment Promotion Agency of Nicaragua, ProNicaragua, Javier Chamorro neither confirm nor deny the investment described.

He said that this year are looking to diversify the type of investments in the country. The presidential delegate for investment Alvaro Baltodano said weeks ago that this year there are the conditions to overcome the investment figures collected in 2011, then estimated to quantify at least 1.000 million in the indicator.

Sector management attracts

“We have an excellent business climate, clear rules and policies, currency stability and low inflation,” Baltodano argued about it.

Meanwhile, the president of the Nicaraguan Federation of Private Zones of Nicaragua, Carlos Vargas, told El Nuevo Diario, which is interested in recycling Diamond Nicaragua as the country of the region with the best competitive rates.

“We we served their representatives, but is responsible ProNicaragua to the lobby to call us only when the investor wants to know one of our industrial parks,” he said.

According to Vargas is likely that the Honduran company is being installed in the country later this year or early next.

According to official figures from the Central Bank of Nicaragua, NCB, Foreign Direct Investment, FDI in 2011 reached 967.9 million dollars, the country’s historical record. This growth was led mainly by the energy, telecommunications and free zones.

In 2011 Nicaragua was able to attract 248 foreign investment projects originating from 41 countries, this is the highest amount in history.

TPL insufficient
The executive director of the Nicaraguan Association of Textiles and Apparel, Anitec, Dean Garcia said they will request the extension of Tariff Preference Levels, known in English as TPL.

In the commercial treaty negotiations and the Dominican Republic signed with the U.S., CAFTA, Nicaragua was the only country in the region that TPL was able to obtain the grant of 100 million square meters per year of nonwoven from the countries that signed the agreement.

Garcia stated that the TPL is not enough, as the industry requires at least 400 million square meters of fabric.

“The use of TPL, is complex because the quota allocated only covers a portion of exports, and industry needs at least 400 million square meters,” he said.

The director said Anitec are about 60 companies making those received by TPL.

“In economic terms this means about 350 million dollars, and because of their importance, we are making efforts to see if we can expand the amount allocated to Nicaragua,” he reiterated.

Link to Original Article:

From El Nuevo Diario via Google Translate

Latin America Investment News on Viva Tropical