Washington, D.C. November 29, 2007 —
IFC, a member of the World Bank Group, has agreed to provide financing
to support the transfer of Japanese car manufacturing technologies to Russia.
This will help sustain jobs in Russia’s automotive sector. IFC’s $5.5
million equivalent loan to Russia's ZMZ-Bearings LLC will help finalize
its acquisition by Daido Metal Co. Ltd., a leading Japanese car component
supplier. It will also finance ZMZ’s modernization program under its new
name, Daido Metal Russia.
The company is based in Zavolzhie, Novgorod
Oblast, one of Russia’s industrial centers, where the economy depends
mostly on the automotive sector. It produces half bearings and other automotive
engine parts. Production improvements will help it diversify its customer
base and position it to supply foreign equipment manufacturers, whose market
presence in Russia is expected to grow significantly over the next five
to 10 years.
Hideo Yoshida, General Manager, Corporate
Planning Division of Daido Metal, said, “IFC’s financial support and
regional expertise has played an important role in our investment in Russia.”
Dimitris Tsitsiragos, IFC Director for
Global Manufacturing and Services, said, “IFC is pleased to support a
transaction that will introduce up-to-date technology and the highest-quality
manufacturing standards of a top-tier Japanese auto parts supplier to Russia.”
Jerome Sooklal, IFC Director for Central
and Eastern Europe, said, “IFC’s investment will encourage foreign investors
to look at opportunities in Russia’s regions beyond the Moscow and St.
Hiroshi Arichi, IFC Director for Tokyo,
added, “I am pleased that we could support Daido’s investment in Russia.
To establish their new production facilities, many Japanese automotive
companies are looking at Russia. I hope we can continue helping them transfer
technologies and contribute to growth.”
IFC, a member of the World Bank Group,
fosters sustainable economic growth in developing countries by financing
private sector investment, mobilizing private capital in local and international
financial markets, and providing advisory and risk mitigation services
to businesses and governments. IFC’s vision is that poor people have the
opportunity to escape poverty and improve their lives. In FY07, IFC committed
$8.2 billion and mobilized an additional $3.9 billion through loan participations
and structured finance for 299 investments in 69 developing countries.
IFC also provided advisory services in 97 countries. For more information,
Russia became an IFC member and shareholder
in 1993. IFC’s investment portfolio in the country stands at $2 billion,
making it the largest country exposure for IFC globally. IFC has invested
in key sectors, including agribusiness, banking, construction materials,
health care, housing finance, information technologies, infrastructure,
leasing, mining, oil and gas, pulp and paper, retail, and telecommunications.
For more information, visit www.ifc.org/eca.