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IFC to Help Transfer Japanese Car Technology to Russia, Sustaining Jobs


In Washington, DC:
Carmen Powell
Phone: +1 (202) 473-4982
E-mail: cpowell@ifc.org


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. Petersburg areas.”

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.”

About IFC
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, visit www.ifc.org.

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.