The Dutch-based Ingersoll-Rand European Holding Company recently received $22.5 million in guarantee coverage from the Multilateral Investment Guarantee Agency (MIGA) for its investment in a Turkish plant manufacturing safety and security devices. MIIGA’s coverage will protect Ingersoll-Rand’s investment, its first in the Turkish market, against the risks of transfer restriction, expropriation and war and civil disturbance.
The Duzce-based plant will replace an existing facility in the production of door locks, cylinders, panic devices and safes. The plant will feature a new air exhaust system as well as a wastewater treatment unit for the local procurement of production inputs.
The plant will rehire some 600 employees who lost their jobs when a currency devaluation move forced the existing plant to halt operations. Once the plant becomes fully operational, as many as 200 new staff will be required.
Turkey has been struggling with a serious economic predicament following a severe banking sector crisis that forced the government to abandon a pegged exchange rate regime in February 2001. Since then, the lira has lost more than 50 percent of its value against the dollar.
MIGA was created in 1988 as a member of the World Bank Group to promote foreign direct investment into emerging economies to improve people's lives and reduce poverty. MIGA contributes to development by offering political risk insurance guarantees to investors and lenders, and by helping developing countries attract and retain private investment. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
