The Compañía Española de Financiación del Desarrollo, COFIDES SA will provide medium to long-term financing to the chemical company Forest Chemical Group for its commercial deployment in the UK.
COFIDES will provide a joint venture loan of €300,000 through the Fund for SME Foreign Investment Operations (FONPYME). This loan will be used to finance the commercial implementation of the company in the UK and the launch of two warehouses for finished products located in the UK and the Netherlands. These two warehouses will be managed from the UK and will provide a buffer stock for demand.
This is the Forest Chemical Group’s first internationalisation project. The company produces and sells industrial "Hot melt" adhesives for the food, agricultural, textile, printing and automotive sectors. The production plant of the company as well as the research laboratories, where R&D is conducted is located in Spain. The company currently has sales offices in Madrid, Barcelona, the United Kingdom and the Netherlands. The company has won several national awards and has important patents.
After signing the agreement, COFIDES Chairman and CEO Salvador Marín highlighted "the importance of FONPYME Fund as a tool to support the internationalisation of Spanish SMEs".
Forest Chemical Group Director General, Pedro Fernandez stressed that "the company is showing significant growth internationally and with this investment we will be able to offer our customers in the UK and the Netherlands, a greatly enhanced service".
The Forest Chemical Group was founded in 2010 and is a leader in the manufacture of industrial hot melt adhesives, with a high R&D involvement in nanotechnology and biotechnology. The business focuses on the manufacture and sale of "Hot melt" adhesives, thermoplastic materials that are contaminant free, solid at room temperature and applied hot for instant adhesion. They are used in industries such as packaging, automotive, aerospace, textile industry, timber and electronics. The main markets in which it operates are Europe (UK, Holland, Belgium and Portugal), North Africa (Algeria, Morocco) and Asia. The company is a leading supplier of hot melt adhesives to the most important companies in Spain.
COFIDES is a combined private-public concern, which since 1988 has provided financial support to Spanish enterprises abroad. COFIDES manages the FIEX and FONPYME funds on behalf of the State Secretariat of Commerce, within the Ministry of Economy and Competitiveness. The stockholders include the Bank of Bilbao Vizcaya Argentaria (BBVA), Santander Bank, Popular Bank, Sabadell Bank and CAF-Development Bank of Latin America