New Delhi, India, July 28, 2010—
IFC, a member of the World Bank Group, is helping Piaggio & C. S.p.A, expand production of its environmentally-friendly scooters, motorcycles and light commercial vehicles in Vietnam and India, creating new jobs and building the market for more fuel-efficient transport.
IFC’s €45 million loan will enable the company to increase the production capacity of its Vinh Phuc plant in Vietnam. Upon completion, the expanded plant will manufacture 100,000 two-wheeled vehicles each year. The loan also supports expansion of the company’s existing plant in Baramati, in the state of Maharashtra, India, which manufactures state-of-the-art, fuel-efficient naturally aspirated and turbo charged diesel engines for its light commercial engines and petrol engines for the two wheelers.The project will allow Piaggio to introduce a variety of new products, with improved fuel efficiencies, to the Indian market.
"One of Piaggio's strategic priorities is expansion in emerging markets, particularly in Asia, with an increasingly eco-friendly and fuel-efficient product pipeline for both our two-wheeler and light commercial vehicles ranges," said Roberto Colaninno, Piaggio Group Chairman and CEO. "We work closely with our local suppliers to improve their industrial processes, quality, and environmental standards."
The expansion projects will create approximately 300 new jobs in India and 480 new jobs in Vietnam. Additional jobs will be created along the value chain, as increased production will generate new demand for suppliers, distributors and post-sales services. The transfer of technological and managerial know-how will help improve the skillsets of the local workforce in both countries.
"IFC is pleased to finance our first project with Piaggio. This will introduce more fuel-efficient engines in India and Vietnam and improve environmental standards in the transport equipment sector," said Dimitris Tsitsiragos, IFC Director for Global Manufacturing and Services. "Piaggio's expansion program will enhance competitiveness of the manufacturing sector in both countries through technology transfer and supply chain development."
In India, Piaggio's light commercial vehicles are popular with smaller business owners because they are a cost-effective way to distribute products, particularly in crowded cities. In Vietnam, the project will improve the quality of two-wheelers available to consumers.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
www.ifc.org
.
About Piaggio
Piaggio was established in 1884 and is based in Pontedera, Italy. Principal activities include the development, production, and sale of two-wheeled motorcycles and scooters and small three- or four-wheeled light commercial vehicles such as minivans, trucks and pick-ups. The company has manufacturing plants in Italy, Spain, India, and recently started its operations in Vietnam. In 2009, Piaggio employed about 7,300 people. The company is listed on the Milan stock exchange.
