Beijing, December 21, 2012 –
IFC, a member of the World Bank Group, has provided a €10 million ($13 million) loan to Sino-Italian joint venture Shandong Changlin Deutz-Fahr Machinery Co. to build a new plant in Linyi, Shandong, an eastern province in China. The plant will supply four-wheel tractors to around 40,000 Chinese farmers over the next five years, helping them improve their farmlands’ efficiency and crop yield.
The joint venture, set up by Chinese machinery conglomerate Changlin Group and Italian farm equipment manufacturer Same Deutz-Fahr, aims to provide affordable and quality tractors to the Chinese market. High-quality machinery can raise efficiencies in farming, irrigation, and food harvesting, processing and distribution.
“We are very excited to begin a new chapter in our collaboration with IFC in China after two previous projects in India and Croatia,” said Lodovico Bussolati, chief executive officer of Same Deutz-Fahr. “We look forward to drawing on IFC’s extensive global experience and local knowledge and applying them in this momentous project.”
“Thanks to IFC’s support and favorable agricultural incentives from the Chinese government, Shangdong Changlin Deutz-Fahr Machinery will play a significant role in improving farmland efficiency, modernizing rural areas and creating better living conditions for farmers,” said Zhong Mo, chairman of the joint venture company.
In addition to improving farm productivity, the project will create 700 jobs in the new plant and more indirect jobs along its supply chain.
“The project fits well with IFC’s global priority of improving food security through increasing agriculture productivity,” said Takuro Kimura, IFC’s global manufacturing industry manager. “Through our partnership with Shandong Changlin Deutz-Fahr Machinery, we are helping to improve Chinese farmers’ lives and promote inclusive growth in rural areas.”
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
.
Stay Connected
