Votorantim Cimentos signed a $150 million financing agreement linked to sustainability indicators with the International Finance Corporation (IFC), the largest global development institution focused on the private sector in emerging markets and a member of the World Bank Group.
“The cement industry is a fundamental part of the future development and urbanization of developing countries and, therefore, essential for sustainable economic growth. Investment in Votorantim Cimentos represents an important steppingstone in the process of improving greener supply capacity in the cement sector, paving the way to attracting more investment,” said IFC Country Manager, Brazil Carlos Leiria Pinto.
The IFC investment will be allocated to the Salto de Pirapora plant in the state of São Paulo for a project that will double the plant’s capacity to substitute fossil fuel with biomass, wood chips, used tires and other refuse-derived sources. Per the IFC agreement, the CO2 emissions reduction attributable to the fuel substitution will be subject to verification by the Science Based Targets initiative. The project is slated for completion in 2028.
“This project is an important step in our decarbonization journey,” said Votorantim Cimentos Global Director of Sustainability Álvaro Lorenz, citing its alignment with the company’s 2030 Sustainability Commitments.
“The decarbonization agenda is one of the biggest challenges for the coming years. Being able to benefit from competitive and long-term loans through partnerships with institutions such as IFC will be essential to enable new projects,” added Chief Financial Officer Biana Nasser.
