New Delhi, India, July 28, 2010—IFC,
a member of the World Bank Group, is helping Piaggio & C. S.p.A, expand
production of its environmentally-friendly scooters, motorcycles and light
commercial vehicles in Vietnam and India, creating new jobs and building
the market for more fuel-efficient transport.
IFC’s €45 million loan will enable
the company to increase the production capacity of its Vinh Phuc plant
in Vietnam. Upon completion, the expanded plant will manufacture 100,000
two-wheeled vehicles each year. The loan also supports expansion of the
company’s existing plant in Baramati, in the state of Maharashtra, India,
which manufactures state-of-the-art, fuel-efficient naturally aspirated
and turbo charged diesel engines for its light commercial engines and petrol
engines for the two wheelers.The project will allow Piaggio to introduce
a variety of new products, with improved fuel efficiencies, to the Indian
"One of Piaggio's strategic priorities
is expansion in emerging markets, particularly in Asia, with an increasingly
eco-friendly and fuel-efficient product pipeline for both our two-wheeler
and light commercial vehicles ranges," said Roberto Colaninno, Piaggio
Group Chairman and CEO. "We work closely with our local suppliers
to improve their industrial processes, quality, and environmental standards."
The expansion projects will create approximately
300 new jobs in India and 480 new jobs in Vietnam. Additional jobs will
be created along the value chain, as increased production will generate
new demand for suppliers, distributors and post-sales services. The transfer
of technological and managerial know-how will help improve the skillsets
of the local workforce in both countries.
"IFC is pleased to finance our first project with Piaggio. This will
introduce more fuel-efficient engines in India and Vietnam and improve
environmental standards in the transport equipment sector," said Dimitris
Tsitsiragos, IFC Director for Global Manufacturing and Services. "Piaggio's
expansion program will enhance competitiveness of the manufacturing sector
in both countries through technology transfer and supply chain development."
In India, Piaggio's light commercial vehicles are popular with smaller
business owners because they are a cost-effective way to distribute products,
particularly in crowded cities. In Vietnam, the project will improve the
quality of two-wheelers available to consumers.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in developing countries. We create
opportunity for people to escape poverty and improve their lives. We do
so by providing financing to help businesses employ more people and supply
essential services, by mobilizing capital from others, and by delivering
advisory services to ensure sustainable development. In a time of global
economic uncertainty, our new investments climbed to a record $18 billion
in fiscal 2010. For more information, visit www.ifc.org.
Piaggio was established in 1884 and
is based in Pontedera, Italy. Principal activities include the development,
production, and sale of two-wheeled motorcycles and scooters and small
three- or four-wheeled light commercial vehicles such as minivans, trucks
and pick-ups. The company has manufacturing plants in Italy, Spain, India,
and recently started its operations in Vietnam. In 2009, Piaggio employed
about 7,300 people. The company is listed on the Milan stock exchange.