Iron Mountain on multimillion dollar infrastructure splurge

Friday, April 1, 2011

US document management services (DMS) company Iron Mountain (NYSE: IRM) is polishing off new infrastructure investments in Chile, Argentina and Peru as part of its Latin American expansion, the company's regional VP for marketing and sales, Ricardo García, told BNamericas.

The company has sunk US$30mn into its Chilean operations alone since the country's February 2010 earthquake, with funds going toward upgrades in storage areas, offices and BPM outsourcing services.

"We have constructed a new plant," he said. "We've increased operative capacity in the area of document and vital record storage and administration... and in the storage areas where we have magnetized mediums."

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Meanwhile, Iron Mountain recently shelled out US$6.5mn for a tract of land in Buenos Aires, where the firm expects to build new storage and physical document management plants.

"The construction will be ready, I hope, by year's end or the beginning of next year," he said. "We just invested in the purchase of the land."

Investments last year also include US$7.4mn to develop a technology campus in Lima's Lurín district. Iron Mountain has also announced 6mn reais (US$3.6mn) for two data centers in Brazil.

Iron Mountain expects its Latin America revenues to increase 20% this year after regional growth fell just short of that figure in 2010.

Globally, Iron Mountain recorded a net loss of US$54mn in 2010, compared with a net profit of US$221mn the previous year. Annual revenues reached US$3.13bn, up 4% compared with 2009.