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Piaggio secures $58.8m loan
The International Finance Corporation (IFC), a member of the World Bank, said it had given a loan of 45 million euros (US$58.8 million) to Italian vehicle maker Piaggio to expand its production in Viet Nam and India.
Piaggio will use the money to increase production of environmentally friendly scooters, motorcycles and light commercial vehicles in existing plants in the northern province of Vinh Phuc in Viet Nam and Baramati, in the Indian state of Maharashtra.
"IFC is pleased to finance our first project with Piaggio. This will introduce more fuel-efficient engines in India and Viet Nam and improve environmental standards in the transport equipment sector," said Dimitris Tsitsiragos, IFC Director for Global Manufacturing and Services.
Of the $58.8 million, $19.6 million will help the company expand its Vinh Phuc lant.
After the expansion, the plant will be able to manufacture 100,000 two-wheeled vehicles a year and create about 480 new jobs.
It is expected that improved capacity and greater demand from suppliers, distributors and expansion of post-sales services will lead to the creation of more jobs.
"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," he added.
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