IDB Invest Partners with Indufoam to Boost Employment in El Salvador
IDB Invest will provide financing of up to $10 million to Indufoam, one of the leading companies in the production and marketing of beds, foams and accessories in Central America, to expand production capacity and diversify the growth of its product lines with more modern and efficient machinery.
The project will support and accompany Indufoam in its growth strategy, helping to open new markets and aiming to increase its workforce by almost 40%, due to the increase in the production of beds and accessories.
The medium-term resources provided by IDB Invest will allow the company to have more effective long-term planning, adjusted to the needs of the business and market changes, both at the sector level and in the non-controllable environment.
Likewise, Indufoam is committed to carrying out an environmental and social action plan, in addition to strengthening its corporate governance actions.
With this project, IDB Invest reinforces its commitment to promoting innovation and technological development in the industrial sector that contributes to generating new jobs in Latin America and the Caribbean.
The deal is expected to contribute to the following United Nations Sustainable Development Goals (SDGs): Decent work and economic growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Responsible production and consumption (SDG 12) and Alliances to achieve the objectives (SDG 17).
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects so that they achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of US$16.33 billion in assets under management and 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that respond to the needs of its clients in a variety of sectors.
Indufoam is an exporting company dedicated to the production of beds and mattresses, whose end markets not only cover Central America and Panama, but also include Colombia, the Dominican Republic, Peru, Ecuador, South Africa and Morocco. It is a leader in the sector and is one of the most industrialized companies and largely integrated in its processes in Latin America. Indufoam constantly innovates in its products and applies sustainable practices in its manufacturing, such as, for example, the use of biodegradable plastic bag packaging and the use of fabrics in the fabrics of its mattresses with sustainable threads, produced from plastic bottles extracted from the sea. Indufoam's commitment to the environment is accompanied by the incorporation of technology and good circularity practices. Thus, for example, leftover raw materials are reinserted into other production processes, eliminating waste. Also, the wire used in the springs comes from 85% recycled steel; and finally, the wood for the bases of beds and furniture comes from forests certified under the SFI (Sustainable Forestry Industry) initiative. Indufoam not only contributes to a sustainable production process, by supplying 100% of its energy demand with clean energy, but its impact contributes to increasing and improving the country's energy matrix, by supplying 80% of the energy generated by its solar panels to the national distribution network. Finally, it should be noted that Indufoam has a 56 million liter reservoir, which captures and stores water during the rainy season for internal use, and which, in the future, will be equipped with a purification system for greater use.