Beijing, March 2, 2007 - IFC, the
private sector arm of the World Bank Group, today signed a loan agreement
with Shandong Weigao Group Medical Polymer Company Ltd, the leading manufacturer
of single-use medical devices in China. The $20 million loan, IFC’s first
transaction with Weigao, will help create greater domestic capability in
the branded medical products sector, where China remains heavily reliant
on imports. The project will allow Weigao to provide international quality
goods to the domestic market at a competitive cost, improving access to
medical products for millions of people.
Weigao will use IFC’s loan to launch
its investment program, which will expand its existing production capacity
across several product ranges, including disposal consumables (syringes,
sterile infusion sets, blood bags, intravenous needles), orthopedics (spinal
implants, trauma products, joints), blood purification products, and stents.
“IFC is delighted to be supporting
Weigao’s expansion, and this project serves as a model for other Chinese
companies in key industrial sectors,” said Richard Ranken, Director of
IFC’s East Asia and Pacific Department. “Weigao is improving living standards
by providing international quality products at competitive cost.”
Dimitris Tsitsiragos, Director of IFC’s
Global Manufacturing and Services Department, added, “This project will
bring important benefits on multiple fronts: it increases access to quality
health supplies, it creates jobs, and it enhances the competitiveness of
Chen Xueli, Chairman of Weigao Group,
said, “As one of the leaders in China’s medical device sector, Weigao
strives to be stronger and more competitive. We hope this will be
a long and productive partnership.”
IFC, the private sector arm of the World
Bank Group, promotes open and competitive markets in developing countries.
IFC supports sustainable private sector companies and other partners
in generating productive jobs and delivering basic services, so that people
have opportunities to escape poverty and improve their lives. Through FY06,
IFC Financial Products has committed more than $56 billion in funding for
private sector investments and mobilized an additional $25 billion in syndications
for 3,531 companies in 140 developing countries. IFC Advisory Services
and donor partners have provided more than $1 billion in program support
to build small enterprises, to accelerate private participation in infrastructure,
to improve the business enabling environment, to increase access to finance,
and to strengthen environmental and social sustainability. For more information,
please visit www.ifc.org.
Incorporated in the People’s Republic
of China, Weigao is listed on the Growth Enterprise Market of the Stock
Exchange of Hong Kong Limited. The company is the leading manufacturer
of single-use medical devices in China, with a nationwide sales network.
Since its founding in 1988, Weigao’s main operation has been the
manufacturing of medical consumable products. The company’s strategic
objective for growth is to expand into more technologically advanced, branded
medical products of world-class quality, while continuing to be the domestic
leader in manufacturing single-use disposable medical products.