IR Emniyet ve Guvenlik Sistemleri Sanayi A.S.

MIGA has provided a $22.5 million guarantee to Ingersoll-Rand European Holding Company, B.V., (IR-Europe) of the Netherlands to cover its $15.3 million investment in, and retained earnings from, IR Emniyet ve Guvenlik Sistemleri Sanayi A.S. (IR-Turkey) for a period of up to 15 years. The coverage is against the risks of transfer restriction, expropriation and war and civil disturbance.

The project involves the acquisition of a lock manufacturing facility in Duzce, Turkey, which elected to discontinue manufacturing operations due to the country's currency devaluations and its resulting cash-flow strain. IR-Turkey, which will upgrade and modernize the facility to improve working conditions and inaugurate an expanded product line (such as door locks, cylinders, panic devices and door frames), is expecting to re-hire 8all 600 previous employees of the company, and to create additional new jobs. Once fully operational, the company will employ about 780 Turkish nationals. This will make IR-Turkey the largest employer in Duzce, a city severely affected by the earthquake of 1999.

IR-Europe will provide training for the workers, along with transportation, meals, and health services. IR-Turkey is committed to local procurement, which should result in strong multiplier effects on upstream and downstream industries. Over the first five years of operation, it is estimated that IR-Turkey will contribute approximately $19 million in foreign exchange earnings, and $7 million in tax revenue. Moreover, IREurope is committed to reinvesting all earnings in IR-Turkey's operations during this period.