CPM-Zhengchang Liyang Machinery Company Ltd.

MIGA issued guarantees for $5.85 million to Ingersoll-Rand China Ltd. (IRC), a wholly-owned subsidiary of the Ingersoll-Rand Company of the United States, for its investment in a joint venture to assemble, manufacture, and market equipment to process animal food in China. The project enterprise, CPM-Zhengchang Liyang Machinery Company Ltd. (CPM,ZL), is formed by IRC and Liyang Zhengchang Grain, Oil and Feed Machinery Head Company of China. Ingersoll-Rand, an international producer of machinery and equipment, also owns California Pellet Mill (CPM), a specialized manufacturer of animal food processing equipment, which will manage and provide technical assistance to the project. MIGA's guarantee covers IRC against the risks of currency transfer, expropriation, and war and civil disturbance.

IRC will own 65 percent of the enterprise, and will make its $3.3 million equity investment in the form of equipment, technology, and cash. The enterprise will use modern technology and benefit from specialized technical assistance that will increase the availability of high-quality animal food processing equipment in China, which was restricted previously due to the limited availability of foreign exchange. CPM-ZL will contribute to the local economy by producing equipment locally and will also export approximately 20 percent of its production. About 50 local people will be employed and training will be provided on-site and abroad.