La Favorita prepares $ 750 million investment for 5 years

Implementation of technology and software development locally, opening and adaptation of premises, expansion of distribution centers, increase of inventory of merchandise, purchases of small, medium and large Ecuadorian producers, clean and renewable electric generation are some of the areas in which La Favorita Corporation plans to invest some $ 750 million in the next five years.

La Favorita – which includes the Supermaxi, Akí, Juguetón, Kiwi and other chains – is one of the companies that signed, this year, investment contracts with the Government.

In total, 114 agreements have been signed for $ 9,400 million, to which another 22 will be added during the processing phase for $ 886 million, said the Ministry of Foreign Trade and Industry.

Rubén Salazar, corporate manager of La Favorita, explained that his investment plan aims to “consolidate the infrastructure in places in Ecuador where there are already activities (21 of 24 provinces), and contribute to the development of less economically active areas such as medium and small cities “; In addition, 6,000 jobs would be generated.

And he affirms that this investment did not imply any conditioning to the regime. “Rather we recognize the efforts that the Government is making for long-term sustainability, and recognizing the productive sector as the most effective engine for productive, labor and welfare development. However, we consider it important to continue working to improve competitiveness, “he said.

Salazar said that the resources that the company will invest, which this year turned 65 of existence, are their own. “Year after year, Corporación La Favorita allocates an investment amount commensurate with the projected growth of its net profits, after the authorization of the Shareholders’ Meeting.”

The executive mentioned that the Government’s opening and the economic measures adopted recently, among them the approval of the Law of Productive Development, have allowed the Corporation “to achieve a better planning for the next five years”.

At the moment, the company analyzes the content of the regulations to identify what opportunities or limitations they would represent, Salazar said, but what do they expect the authorities to issue the regulation to define what tax incentives could be used to facilitate the investment.

“We anticipate that technology projects, software, industrial production, clean energy generation and waste management will be the most likely to assimilate the benefits of the law,” he said. (I)

Ecuadornews:Source: https://www.eluniverso.com/noticias/2018/09/10/nota/6946862/favorita-prepara-inversion-750-millones-5-anos