Changchun, China, November 3, 2005
— The International Finance Corporation, the private sector arm of the
World Bank Group, has signed an agreement to provide a $4 million loan
to China’s Changchun TBK Shili Auto Parts Co., to help them begin producing
asbestos-free car brakes.
The loan will help finance construction of a plant to manufacture break
linings without asbestos, reducing pollution and health risks in China.
The country’s brake friction materials currently contain about 40 percent
asbestos, a material linked to lung cancer.
The borrower is a joint venture between TBK Co., Ltd., Japan’s manufacturer
of brake systems for trucks and buses, and Changchun
Shili Automobile Brake Parts Co.,
Ltd., a Chinese manufacturer of brake friction materials.
TBK’s advanced technology allows the company to produce non-asbestos brake
linings at low cost, which will benefit its customers and while improving
air quality. First Automotive Work group, China’s largest vehicle manufacturer,
will use the linings in its commercial vehicles.
“This project will have significant positive impacts on the environment
as well as contribute to local economic development,” said Dimitris Tsitsiragos,
IFC’s Director for Global Manufacturing and Services. “This project underscores
IFC’s commitment to supporting the transfer of advanced manufacturing
technologies and established industrial practices to China and other emerging
IFC’s participation has played an important role in setting up the project.
IFC’s unique status as an international organization and its expertise
and experience in the Chinese market have given TBK comfort in dealing
with its local partner and the government. IFC’s monitoring of the project’s
implementation will also help ensure the success of key developmental impacts,
including technology transfer and employee training.
The International Finance Corporation is the private sector arm of the
World Bank Group and is headquartered in Washington, D.C. IFC coordinates
its activities with the other institutions of the World Bank Group but
is legally and financially independent. Its 178 member countries
provide its share capital and collectively determine its policies.
The mission of IFC is to promote sustainable private sector investment
in developing and transition countries, helping to reduce poverty and improve
people’s lives. IFC finances private sector investments in the developing
world, mobilizes capital in the international financial markets, helps
clients improve social and environmental sustainability, and provides technical
assistance and advice to governments and businesses. From its founding
in 1956 through FY05, IFC has committed more than $49 billion of its own
funds and arranged $24 billion in syndications for 3,319 companies in 140
developing countries. For more information, visit www.ifc.org.