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Belgrade, Serbia, May 9, 2016
- IFC, a member of the World Bank Group, provided a $30 million loan to Hong Kong-based Johnson Electric to expand production in Serbia, helping spur job creation and manufacturing growth.
Johnson Electric’s plant in Nis, Southern Serbia, currently employs 600 people. The company expects to increase the work force to 3400 by 2020. That is especially important in Nis, a town with a long industrial history facing higher unemployment than the national average of 16 percent.
Johnson Electric is a manufacturer of electric motors and related components. As one of the leading makers of micro-motors in the world, Johnson Electric’s components are used by assemblers of automobiles, electrical appliances, and tools.
“IFC has been very supportive in assisting with the funding of our global expansion plans,” said Jeff Obermayer, Johnson Electric’s chief financial officer. “This investment will have a positive impact on the region, as local suppliers to Johnson Electric will create more jobs in Serbia.”
The loan is part of the $75 million financing IFC extended to support Johnson Electric’s expansion to China, Brazil, Mexico, and Serbia.
“IFC supports the development of the manufacturing in Serbia and the creation of new jobs in the country,” said Thomas Lubeck, IFC Regional Manager for the Western Balkans. “Attracting foreign investors such as Johnson Electric, which invest in export-oriented projects, will greatly benefit the local economy.”
Serbia became a shareholder and member of IFC in 2001. Since then, IFC's investment in Serbia totaled $2.1 billion, including $794.7 million mobilized from our partners, in 51 projects across a variety of sectors. In addition, IFC has supported trade flows of $178.6 million through its trade finance program. Under the new World Bank Group’s Country Partnership Framework (CPF) for Serbia, IFC will provide financing of $400 to $600 million during the Fiscal Year 2016-20 period.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence, to create opportunity where it’s needed most. In FY15, our long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity. For more information, visit
www.ifc.org
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