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Washington D.C., United States of America, May 21, 2013
—IFC, a member of the World Bank Group, is making a $6 million equity investment in Sanoh Rus, a subsidiary of Japanese manufacturer Sanoh, to promote employment and competitiveness in Russia’s automotive industry.
Sanoh Rus will build new manufacturing facilities for brake, engine, fuel, and power steering lines, which are expected to provide direct employment for about 500 people—half of them women. In addition, as many as 1,500 jobs will be supported indirectly through suppliers, distributors, and sales. In addition to financing, IFC will also provide the company with advisory services to improve resource efficiency and corporate governance.
“By bringing technology and management skills, we are making Russia’s auto industry more competitive and supporting much needed employment,” said Hiroshi Imagawa, Senior Executive Officer and Managing Director of Sanoh Industrial.
Tomasz Telma, IFC Director for Europe and Central Asia, said: “The development of Russia’s automotive industry will help diversify the country’s economy and reduce its dependence on natural resources. This high-quality manufacturing facility, which will recycle practically all its waste, will demonstrate the potential for developing local automotive production in Russia and encourage other international companies to invest.”
Demand for automobiles is growing rapidly in Russia, driven not only by first-time buyers, but also by the replacement of old inefficient vehicles with modern, lower emissions and more energy-efficient vehicles. Local production capacity to meet this demand is limited, however, because of a prolonged shortage of investment in technology and skills.
IFC is providing investment and advisory support in Russia to foreign and local manufacturers in areas of efficient growth, sustainable development, economic diversification, and management best practices.
Russia became a member and shareholder of IFC in 1993. Since then, IFC has invested more than $10 billion in the country, including $3.2 billion in syndicated loans, and has been involved in 270 projects across a variety of sectors. IFC’s investment portfolio in Russia stands at $2.3 billion.
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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About Sanoh Industrial
Sanoh Industrial (Sanoh) is a global supplier of automotive parts for both brake and fuel lines, engine and tank products with a worldwide network of 59 production facilities in 20 countries. Sanoh seeks to continually adapt to the dramatic changes in the global market such as developing environmental friendly products and production methods while constantly advancing its capabilities to meet future developments and innovations by putting forth best efforts for the sake of the safety and security of stakeholders together with environmental conservation. For more information, visit
www.sanoh.com
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