Shenzen Jiadianbao Electrical Products Co. Ltd.

MIGA issued $14.4 million in coverage to Catalina Lighting, Inc., a U.S. supplier of premium lighting fixtures, to acquire and expand Shenzhen Jiadianbao Electric Products Company, Ltd. (SJEP), in China. SJEP manufactures lamps, lighting fixtures, flash, lights, and electric screwdrivers. MIGA insurance covers the risks of expropriation and war and civil disturbance.

The project promises to have a positive environmental impact, as Catalina will install a new wastewater treatment facility at the factory. The plant will serve as a model for other new businesses because SJEP is expected to become the most technologically advanced production facility in Guangdong province.

The project will provide a significant boost to the local economy. Most of the supplies needed to modernize and expand the plant will be sourced locally, and eventually Catalina hopes to obtain all raw materials and production components locally. Employment figures indicate that the current work force will double to almost 5,000 permanent employees after the expansion, all of whom will be Chinese nationals. These employees will receive substantial technical and management training on various aspects of modern technology and production line management. The construction phase of the project will temporarily employ another 3,000 people. Along with additions to the existing plant, three new dormitories will be built to house SJEP employees.