Washington, DC, May 30, 2013
—IFC, a member of the World Bank Group, will lend €20 million to Chalybs Cylinders Limited of Thailand to help finance construction of a manufacturing plant that will produce seamless fuel tanks critical for the production of vehicles powered by compressed natural gas (CNG). This investment will promote employment, increase productivity through new technology, and support development of the supply chain for environmentally friendly CNG automobiles in Asia.
Chalybs is majority owned by Faber Industrie S.p.A. (Faber) of Italy, a leader in the production of seamless steel and composite tanks for the storage of high-pressure gases.
“The project is aligned with Faber’s strategy of establishing manufacturing facilities near automotive clusters that have the highest growth potential for CNG-powered vehicles. Thailand is developing as a hub to support such market growth with its advantages in logistics and the presence of major automotive manufacturers,” said G. Luigi Cola, a managing director of Faber.
The greenfield plant will use state-of-the-art, energy-efficient technology and will have an annual production capacity of up to 250,000 tanks. Local production will benefit manufacturers of CNG-powered vehicles in Thailand who now must import these tanks. When completed, the project is expected to create about 100 high skilled, direct jobs and transfer high-tech skills to Thailand’s manufacturing sector.
“The project will contribute to the continued evolution of Thailand's automotive sector to higher-skilled work, and to the development of the CNG-powered vehicle market in Asia," said Atul Mehta, IFC Director for Global Manufacturing, Agribusiness, and Services. “This will benefit both the economy and the environment.”
About Faber Industrie S.p.A.
Established in 1972, Faber Industrie S.p.A. has grown to become the leader in the production of seamless steel and composite gas cylinders for medical and industrial applications (oxygen, nitrogen, and hydrogen tanks), leisure (scuba diving), and compressed natural gas (CNG) vehicles. Faber has four plants located in Italy and India with a production capacity of over one million cylinders per year.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
.
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