Spanish Paper Maker Announces Joint Venture with Cuba

Spanish Paper Maker Announces Joint Venture with Cuba

HAVANA – Spain's Castor Plus has formed a joint venture with the Cuban
government to produce paper at a plant in the central province of Sancti
Spiritus, the firm's president told Efe Thursday.

Castor Plus plans to invest 7 million euros ($9.9 million) initially and
another 5.5 million euros ($7.8 million) later, with the goal of
producing some 40,000 tons of white paper in the first year, Carmelo
Zubiaur said.

The firm eventually will produce nearly 100,000 tons and earn more than
$104 million in annual revenue, according to a feasibility study.

The Cuban government holds 51 percent of the joint venture, known as
Jatipap, but the Spanish firm is responsible for management and marketing.

The Jatibonico plant was built in 1979 with French technology and, once
it is up and running again with the help of Spanish engineering firm
Ezbisa, will create 121 direct jobs and 300 indirect jobs, said Zubiaur,
who has done business on the island for more than a decade.

He said he is aware of the island's serious economic problems and the
communist government's severe lack of liquidity, but is hopeful the
situation will be overcome and that Jatipap will earn a reasonable
profit by substituting imports in a "strategic sector."

Nearly 60 Spanish companies currently are involved in joint ventures
with the Cuban government, among them Repsol, Melia, Barcelo, NH Hoteles
and Aguas de Barcelona. EFE

Latin American Herald Tribune - Spanish Paper Maker Announces Joint
Venture with Cuba (5 June 2009)

http://www.laht.com/article.asp?ArticleId=336577&CategoryId=14510