Modernized plant will help increase exports to Middle East, Africa, South Asia and the United States.
WASHINGTON DC, December 20, 2018 – MIGA, a member of the World Bank Group, has issued $16.2m in guarantees covering the investment of Paşabahçe, a glassware company of the Şişecam Group, in a glassware manufacturing plant in Egypt. The guarantees cover 90 percent of the investment for up to fifteen years against the risks of Transfer Restriction, Expropriation, and War and Civil Disturbance.
Paşabahçe’s investment is in support of acquiring and operating the plant, upgrading equipment, and increasing capacity for manufacturing high-quality glass tableware. Improvements to the plant include three additional production lines and adoption of new technologies.
The plant is fully operational and employs over 500 workers, and close to a third of the employees are skilled operators and engineers. Training on new production methods such as press-blown glass, as well as quality and safety standards are a key element of the undertaking.
“The improvements to the glass manufacturing plant will lead to increased output and improved skills and expertise for the local workforce,” said MIGA EVP & CEO Keiko Honda. “Closer integration with domestic suppliers and higher quality standards will also have a positive overall effect across the sector.”
The plant will purchase more than half of the raw material and packaging material, such as sand, limestone and corrugated paper locally.
The high quality of the products, manufacturing and labeling processes, management systems, efficient use of energy, and environment and social standards are expected to offer a significant demonstration effect to other local firms.
Paşabahçe is a leading glassware producer in Turkey, and the third largest globally. Paşabahçe conducts its manufacturing activities at six plants in four countries – Turkey, Bulgaria, Egypt and Russian Federation. The firm currently sells glass products in 140 countries.
“MIGA’s guarantees are crucial in order to strengthen Paşabahçe’s current operations in Egypt,” said Şişecam Glassware Group President Cemil Tokel. “Enhancements to the glassware plant will have positive effects both on Egypt’s manufacturing sector and its trade competitiveness.”
MIGA was created in 1988 as a member of the World Bank Group to promote foreign direct investment in emerging economies by helping mitigate the risks of restrictions on currency conversion and transfer, breach of contract by governments, expropriation, and war & civil disturbance; and offering credit enhancement to private investors and lenders.
This year marks MIGA's 30th Anniversary. Over the last three decades, MIGA has directly supported over $50 billion in investments for over 845 projects in 111 developing countries.
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