Investment Helps Flood-Hit Thai Auto Industry’s Recovery
[Correction: This press release originally issued 10 May 2012 has been revised to reflect the following:
Continental Automotive Thailand’s plant started operating in 2010 and is located in Amata City, Rayong province.]
Bangkok, Thailand, May 30, 2012—
IFC, a member of the World Bank Group, is financing the development of Continental Automotive’s car parts factory in Thailand that started to produce environmentally friendly components in April 2010 and continues to create jobs in the country’s flood-affected automotive industry.
IFC mobilized €70 million in financing for the plant, consisting of a €35 million loan from our own account and a €35 million loan from Germany’s KfW IPEX-Bank. The plant in Amata City, Rayong province produces high-precision common-rail injection components that increase fuel efficiency of diesel engines and cut carbon emission by more than 15 percent compared with regional standards.
“This financing recognizes our innovation and contribution to improving fuel efficiency in the automotive sector,” said Stefan Scholz, Group Treasurer of Continental AG, the parent company of Continental Automotive Thailand. “IFC has shown a strong commitment to support us and helped us diversify our funding sources, especially during these difficult market conditions.”
The financing package is part of IFC’s Thailand Flood Response Strategy to support the government’s efforts to help local businesses, especially small and medium enterprises, recover from last year’s disaster. IFC is providing emergency liquidity to agricultural and manufacturing companies through Thai banks, as well as directly financing the rebuilding and upgrade of key industrial estates.
“IFC’s investment in Continental Automotive Thailand and support for the Thai auto industry’s recovery show our vital countercyclical role in the financial markets –
providing financing when the private sector needs it most,” said Simon Andrews, IFC Regional Manager for Thailand, Cambodia, Laos, PDR, and Vietnam. “The plant will help create hundreds of jobs in the local market and about a thousand more along the supply chain.”
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, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
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About Continental AG
With sales of €30.5 billion in 2011, Continental is among the leading automotive suppliers worldwide. As a supplier of brake systems, systems and components for powertrains and chassis, instrumentation, infotainment solutions, vehicle electronics, tires and technical elastomers, Continental contributes to enhanced driving safety and global climate protection. Continental is also an expert partner in networked automobile communication. Continental currently has approximately 167,000 employees in 46 countries.
