JP Industrie, S.A.
On March 28, 2012, MIGA issued a guarantee of $3.5 million to Fons Mediterrània Capital, F.C.R. de Régimen Simplificado of Spain (FMC) covering its investment in JP Industrie, S.A. (JPI) in Morocco. The coverage is for a period of up to five years against the risks of transfer restriction, expropriation, and war and civil disturbance.
The project involves coverage of JPI, an existing portfolio company of FMC, a Spanish private equity fund. JPI specializes in manufacturing, marketing, and installing aluminum and PVC building supplies for the construction and home improvement markets in Morocco. Its main products are aluminum and PVC (plastic) windows and doors, but it also offers carpentry products and installation of air conditioners.
JPI has had a positive impact on the local economy of El Jadida since 1991, particularly with respect to knowledge transfer through its training and development center that was set up with the support of the National Agency for the Promotion of Employment and Competitiveness of Morocco. JPI currently employs 200 people and expects to hire an additional 130 staff by 2014.The center trains 30 operators per year in techniques for the manufacturing, assembly, and installation of aluminum and PVC windows and doors, as well as other carpentry products. Following the course, a large portion of the students join JPI. FMC has also introduced new social responsibility, corporate governance, and management best practices into the company, which should have a positive demonstration effect on other enterprises in El Jadida.
MIGA’s support to FMC and this project is consistent with the first pillar of the World Bank Group’s Country Partnership Strategy for Morocco, which emphasizes employment, growth and competitiveness.
In addition, the project is consistent with MIGA’s efforts to mobilize $1 billion in insurance capacity to support foreign direct investment into the Middle East and North Africa. The project was underwritten through MIGA’s Small Investment Program.