Protecta aims to sell 400k life policies in 1st year

Peruvian life insurance company Protecta plans to sell 400,000 policies worth US$10mn during its first year of operations, the insurer said in a press release.

Protecta, which launched operations last February, specializes in microinsurance.

Peru's financial sector regulator SBS authorized financial services group ACP Inversiones y Desarrollo to incorporate Protecta in July 2007.

ACP Inversiones y Desarrollo is the controlling shareholder of Peruvian microfinance bank Mibanco.

Protecta plans to offer microinsurance using non-bank finance companies and cooperatives as distribution channels, according to the statement.

The new insurer will sell both individual and group life insurance and annuities.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: March 28, 2008

Peruvian enterprises to participate in Construexpo 2008 fair in Venezuela

Seven Peruvian enterprises will participate in the international fair "Construexpo 2008" to be held from April 2 to 6 in Caracas (Venezuela), reported today the Peruvian Export and Tourism Promotion Agency (Promperu).

This fair, which is organized by the Venezuelan Construction Chamber and the Confex International Corporation, will gather international seller and buyers of construction materials.

Construexpo 2008 will count with enterprises from countries such as Italy, Peru, Iran, Spain, Argentina, Austria and Colombia in order to exchange experience and knowledge.

There will be more than 130 enterprises, in an area of 6,000 meters, to exhibit machinery and equipment.

Promperu will attend the Peruvian enterprise to strengthen the Peruvian image in the building industry inside the Latin- American market, searching potential buyers and distributors to facilitate the access of the Peruvian products to the international market.

Publication: Andina - English Newswire
Provider: Andina
Date: March 29, 2008


Volcan studying new Zn reserves at Cerro de Pasco

Peruvian zinc miner Volcán is carrying out studies to outline the 54Mt of new reserves needed to expand the open pit at its Cerro de Pasco operation, according to a report by Lima bank BCP.

The company is also studying the relocation of Cerro de Pasco's concentrator as a part of the expansion.

Representatives of BCP and Volcán were not available for comment when contacted by BNamericas.

Volcán currently has recorded 53.6Mt of reserves at Cerro de Pasco, the largest reserve base of the company's operations.

Cerro de Pasco, first mined in the 1500s, is one of the world's oldest existing mining operations. Last century the mine was under control of the Cerro de Pasco Corporation until it was nationalized in 1973 and then privatized in 1999, when it was acquired by of Volcán.

Volcán is one of the world's largest zinc producers with output of 335,926t last year.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: March 25, 2008

Calidda set to begin Huachipa gas supply works

Peruvian gas distributor Cálidda aims to begin construction next month of a project to supply industries in the Huachipa area outside Lima, company general manager Ernesto Córdova said.

"We're closing contracts for the purchase of materials and the contractors," state news agency Andina quoted Córdova as saying.

Construction of the project's 16km pipeline will take 11 months, with first gas due in the first half of next year, he said.

The gas will supply 10 large companies including brewer Ambev, beverage company Ajeper, dairy products firm Gloria and textile company Creditex.

Cálidda is also looking at potential clients in Chaclacayo, the executive said.

Houston-based AEI and Colombian natural gas provider Promigas control Cálidda, which serves Lima and neighboring port city Callao. The distributor aims to be supplying 274 industrial firms compared to the current 210 by year-end.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: March 25, 2008


Hialpesa and Hilanderia del Sur investing in the future

Hilanderia de Algodon Peruana (Hialpesa), the Peruvian cotton (thread and clothing) group, is looking to grow fast in time for the introduction of the free trade treaty with the US. It is building a new plant in Ate-Vitarte and has head-hunted Luz Huarcaya, former general director at Diseno y Color.

In the first nine months of 2007, exports for Hialpesa exceeded US$25mil, a rise of 37%. Meanwhile, Hilanderia del Sur is also investing in a bid to increase the use of its installed capacity by 20% to meet growing demand home and abroad.

Publication: SABI - Business News
Provider: South American Business Information
Date: March 16, 2008

Dasani directed at healthy flavoured-water favourers

In 2006, Coca-Cola noted that Peruvian consumption of still water was on the rise as health concerns came to the forefront and it also discovered that many people like their water flavoured. The Coca-Cola product Dasani is perfect for such people.

New products boss for the drinks colossus in Peru, Carlos Pizarro explains that sales for the water product rose 80% in 2007 and that they should advance by another 20% this year. Dasani also features added vitamins and minerals. The drink ranks second within the still gas segment behind Ajegroup's Free Light with a 40% share of the market; however, Coca-Cola has a 44% share of the overall water market, ahead of Aje's 35%.

Publication: SABI - Business News
Provider: South American Business Information
Date: March 17, 2008


Artemis extends excipient-free purple corn line

Artemis is launching a new excipient-free purple corn ingredient standardised to 12 percent anthocyanins, extending the options for companies developing antioxidant-based products.

Purple corn is a crop native to Peru, where it has been used since before the time of the Incas. It is usually cultivated at 10,000 feet and although it can also be grown in the valleys it is thought that the higher altitudes play a part in its vivid purple color.

Artemis already has two other purple corn products in its portfolio, standardised to 7.5 percent and 11 percent anthocyanins. It says these are "obtained by aqueous extraction followed by a process of concentration, and spray dried".

Marketing manager Leslie Gallo said that this adds to the options for customers who choose to formulate without maltodextrin or other carrier ingredient.

Gallo added that the company is seeing "increased interest" in purple corn products. Not only can they be used in products marketed on a healthy platform, but they can also provide a break from run-of-the-mill flavours for shakes and similar products.

In addition, Artemis says purple corn can also be a "great natural colorant".

Artemis says that the most abundant of the anthocyanins found in purple corn is cyanidin-3-glucoside.

The company cited several pieces of research that suggest beneficial health benefits provided by purple corn and cyanidin-3-glucoside.

For instance, it says research into the efficacy of purple corn to help combat colorectal cancer is "promising", since in a study using mice with colorectal carcinomas, lesions were seen to significantly decrease (Hagiwara et al, 2001).

The anthocyanin was seen to increase endothelial nitric oxide synthase production, which in turn relax vascular endothelial cells and, indirectly, affect blood pressure (Xu et al, 2004).

Cyanidin-3-glucoside from purple corn was also investigated as part of an obesity study using mice, to determine its potential as an anti-obesity and anti-diabetic agent. In animals given the anthocyanin, levels of adipocytokines like adiponectin and leptin - proteins that are markets of glucose homeostasis in the blood - were seen to increase. (Tsuda et al 2004).

The new ingredient - as with the rest of Artemis' berry extracts and PhytoSolutions formulations - will be co-marketed in the United States through its partnership with Linnea.

The two companies, both of which have a base in berry ingredients, signed their partnership agreement one year ago, with a view to extending distribution of their products in North America and the rest of the world.

Publication: NOVIS Food&Beverage News
Provider: Novis
Date: March 14, 2008

Aceros Arequipa board approves expansion to 1Mt/y

The board of Peruvian steelmaker Aceros Arequipa has approved the second phase of a US$280mn integral expansion plan, the company said in a statement.

Aceros Arequipa has reformulated its initial expansion plan due to recent growth in the market and its "interesting outlook for evolution," such that capacity will reach 1Mt/y, the statement said. The plan involves the expansion of the electric steel mill and rolling capacity at its Pisco plant and modernization of the rolling line at its Arequipa plant.

In addition the company plans to build a new sponge iron plant.

The works will be complete and in operation in the fourth quarter of 2009, according to the company.

Peru's second largest steelmaker, Aceros Arequipa sold 161,000t of steel products in the fourth quarter of 2007 for US$10.2mn in profits.

The company produces corrugated iron, wire, profiles and other steel products for the construction sector. In Peruvian steel output, the company is second only to Siderperú, controlled by Brazilian group steel Gerdau

Publication: Business News Americas - English News
Provider: Business News Americas
Date: March 14, 2008


Pro Inversion backing a hat full of projects

The executive director of Peruvian entity Pro Inversion, David Lemor has stated that the operation is currently promoting projects requiring investment of US$4.174bil in State assets. The leading sectors are energy (US$994mil), property (US$768mil), land transport infrastructure (US$631mil) and ports (US$558mil). The single biggest project receiving Pro Inversion backing is the Terramar property development in Piedras Gordas, Ancon: 200,000 homes will be built by the private sector after tender at a cost of US$750mil. The project closest to fruition is that of the Lima electric tram (1.5 kilometres set to cost US$280mil).

Publication: SABI - Business News
Provider: South American Business Information
Date: March 12, 2008


Investors eye Bayóvar port as oil distribution center

Foreign investors have expressed interest in Peru's Bayóvar port, in northern department Piura, state-owned oil company Petroperú reported in a release.

If these interests move forward and investors carry out their project, the port would become the main receiving and distribution center for oil and oil-refined products on the American Pacific coast, Petroperú president César Gutiérrez said in the release.

Because of its geographical characteristics, Bayóvar could store up to 10Mb of oil, surpassing even the Panama Canal's capacity, which can currently handle up to 5Mb of oil between its Pacific and Atlantic installations.

Currently, Bayóvar's 27m dock draft can handle ships transporting 1.5Mb of oil and has the capacity to store 2Mb. To store another 8Mb, a new storage area would be constructed, Gutiérrez said.

The initiative would call for an investment of roughly US$200mn, he added.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: March 10, 2008

Hidrosan to expand operations in LatAm

Chilean sanitation firm Hidrosan expects sales of US$100mn in the country during 2008, company president Guillermo Ruíz was quoted as saying in Peruvian paper Gestión.
Ruíz also referred to expansion plans in other countries. The company has already signed a number of contracts for the construction of potable and wastewater treatment plants in Panama, which will require investments of US$3mn, the report said.

Hidrosan plans on entering the Peruvian market this year and has already pre-qualified in tender processes in the country and also in Ecuador. These projects include finding a strategic partner for Ecuador's Quito water utility Emaap and a concession to provide water services in Peruvian city Tumbes.

Argentina is also in the company's expansion plans, the report said.

According to Ruiz, the company will invest around US$15mn in Chile this year, where it is seeking to strengthen local operations in areas such as industrial wastewater treatment services, using improved engineering and monitoring services, as well as the construction and operation of new plants.

The company is also involved in solid waste treatment, holding a 37% stake in the Santa Marta landfill, located in Chile's capital Santiago, which handles 40% of the city's waste.

Hidrosan also holds shares in Chilean water utilities Aguas Chañar and Aguas Patagonia de Aysén.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: March 10, 2008


Taiwan CPC Eyes Investments in Peru Hydrocarbons Sector

Taiwan-based petroleum and natural gas company Chinese Petroleum Corporation (CPC) eyes investments in the hydrocarbons sector in Peru, the head of the economic department at Taipei Economic and Cultural Office, David Huang, said on March 5, 2008.

Representatives of the company will arrive in Peru in mid-March 2008 to evaluate preliminary opportunities to invest in the country. The visit targets to obtain general impression of the Peruvian hydrocarbons market, Huang said. CPC now has investments in Ecuador and Peru is seen to be the second South American country where the company will operate. Huang did not ruled out the possibility of Taiwanese entrepreneurs entering Peruvian natural gas market, taking into account its enormous growth potential.

Huang also said that Taiwan was interested to sign a free trade agreement (FTA) with Peru and to strengthen the links with the South American country in future.

Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: March 6, 2008


After the failure of their merger with Falabella, D&S would arrive at Peru

Last Monday, D&S, leader in supermarkets in Chile, and the Falabella group announced the decision to cancel their merger in Chile, after the refusal of the authorities that argued abuse of dominion position.

This alliance was an opportunity so that D&S could arrive to Andean countries, where Falabella already has a strong presence. The Ibanez family (owners of D&S) has no retail business outside Chile and Argentina.

The arrival to the region of giants like Wal-Mart, Carrefour and Casino is expected soon and the Chileans have not remained of crossed hands. Already Ripley, Falabella and Cencosud have arrived and extended their operations in Mexico, Peru, Colombia and Brazil. Will be decided the Ibanez to follow the steps to them? Let us see.

Last July, during the forum "Internationalization of the Chilean retail", held in Santiago, we asked Alfredo Moreno, director of Falabella, and to Silvio Rostagno, corporative manager of D&S, what the regional operators would have to do to restrain the attack of the world-wide giants of the retail. They agreed in answering: To grow internationally. The one that arrives first gets market share and better locations. As well, D&S spokesmen have indicated its interest in Peru as part of its internationalization, by three arguments: proximity, its political-economic stability and, above, its good growth prospects.

In that sense, and after the decision taken this week, it is clear that D&S already must determine to grow outside, specifically in Peru, with two feasible alternatives today: to ally with Falabella or to make it alone.

In the first case, he could carry out here the merger denied in Chile. Their agreement would give Tottus more financial muscle to face a heavy weight supermarket like Cencosud (that will harness to the Group of Supermarkets Wong with more of US$100 million this year). D&S would face a practically virgin market (the penetration of the modern retail in Peru does not arrive at 28%) and with a spending power every greater time. Revamp Tottus? Launch new formats? Acquire small chains? Everything fits within the plans of this duet.

In the case of not reaching an agreement with Falabella to merge in Peru, would dare the Ibanez to enter Peru alone? Yes, for the reasons explained above. It will be more difficult, sure because the best locations already were taken by Peruvian Wong, Supermercados Peruanos (SP) and Falabella. In addition, SP already said that it will not sell. Although Wong said the same months ago, the fact of being part of a solid group as Interbank gives an endorsement them like believing to them. That is the possibility of acquiring to another great company of he himself heading is not very realistic at the moment. The ideal vehicle to enter an international market like Peru would be with a minority local partner, but Enrique Ostale, general manager of D&S, would not hesitate to enter without a partner if that is the case.

Whatever outside the decision that takes the Ibanez, the certain thing is that they do not face any capital shortage. D&S today has an investment of accounts receivable in their financial business, on the US$700 million, which can be used to obtain financing. The other source is to sell some properties, indicated Ostale recently. The Peruvian market bond as much effort? Chile is already developed and Peru has a huge potential. When will come? The maximum date drawn up by the company is 2010.

Publication: El Comercio
Provider: El Comercio
Date: March 5, 2008

This translation has been prepared using machine translation software, which has been enhanced with a specialized dictionary.


LAN Peru puts Cusco strike behind it

Last week was a difficult one for Spanish executive Jorge Vilches, made general director of LAN Peru less than six months ago. The Chilean airline's local filial stopped flying to Cusco for a few days, coinciding with the strike called there. Normally, LAN boasts 12 frequencies involving Cusco per day. The strike has since been called off but the effect would have been massive had it dragged on. Vilches has had to speak to many US and European travel groups wanting reassurance over the destination for inclusion in future packages.

The general director of LAN Peru says that the filial's fleet is the most modern in all Latin America right now - it boasts ten Airbus 319s that average out at 1.5 years old each and will another four in this year - and that its approximation over the last 18 months to low-cost strategies has been working better than expected (especially the cheap night-flights). In 2007, passenger numbers for LAN Peru rose 32% to 2.2 million (out of a total market of 3.2 million). The Peruvian operation now represents 15% of total LAN Airlines revenues. It flies 77 times per day.

Publication: SABI - Business News
Provider: South American Business Information
Date: March 4, 2008