Belgrade, Serbia, May 9, 2016 - IFC,
a member of the World Bank Group, provided a $30 million loan to Hong Kong-based
Johnson Electric to expand production in Serbia, helping spur job creation
and manufacturing growth.
Johnson Electric’s plant in Nis, Southern
Serbia, currently employs 600 people. The company expects to increase the
work force to 3400 by 2020. That is especially important in Nis, a town
with a long industrial history facing higher unemployment than the national
average of 16 percent.
Johnson Electric is a manufacturer of electric
motors and related components. As one of the leading makers of micro-motors
in the world, Johnson Electric’s components are used by assemblers of
automobiles, electrical appliances, and tools.
“IFC has been very supportive in assisting
with the funding of our global expansion plans,” said Jeff Obermayer,
Johnson Electric’s chief financial officer. “This investment will have
a positive impact on the region, as local suppliers to Johnson Electric
will create more jobs in Serbia.”
The loan is part of the $75 million financing
IFC extended to support Johnson Electric’s expansion to China, Brazil,
Mexico, and Serbia.
“IFC supports the development of the manufacturing
in Serbia and the creation of new jobs in the country,” said Thomas Lubeck,
IFC Regional Manager for the Western Balkans. “Attracting foreign investors
such as Johnson Electric, which invest in export-oriented projects, will
greatly benefit the local economy.”
Serbia became a shareholder and member of
IFC in 2001. Since then, IFC's investment in Serbia totaled $2.1 billion,
including $794.7 million mobilized from our partners, in 51 projects across
a variety of sectors. In addition, IFC has supported trade flows of $178.6
million through its trade finance program. Under the new World Bank Group’s
Country Partnership Framework (CPF) for Serbia, IFC will provide financing
of $400 to $600 million during the Fiscal Year 2016-20 period.
IFC, a member of the World Bank Group, is
the largest global development institution focused on the private sector
in emerging markets. Working with more than 2,000 businesses worldwide,
we use our capital, expertise, and influence, to create opportunity where
it’s needed most. In FY15, our long-term investments in developing countries
rose to nearly $18 billion, helping the private sector play an essential
role in the global effort to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org.
To learn more about Johnson Electric,
please visit www.johnsonelectric.com.