Shanghai White Cap Ltd.

MIGA issued $5.85 million in coverage to Schmalbach-Lubeca AG of Germany, for an equity investment in the production and sale of vacuum closures and packaging equipment for food and beverage containers. MIGA insurance is provided against the risks of transfer restriction, expropriation, and war and civil disturbance.

The project enterprise, Shanghai White Cap Co. Ltd., will benefit from a transfer of technology and managerial expertise. The products will improve food safety by enhancing the quality of the closures and sealing equipment for food containers. The closures will be used to preserve perishable products, such as coffee, dairy products, and soups.

The project will lease machines for the production of vacuum closures to local Chinese companies. Schmalbach will also provide technical and after-sales services to its customers in China. Local employees will receive on-site training in manufacturing, testing, and distribution of high-quality food packing products. A social welfare program, including medical, housing, accident insurance and other benefit funds, has been established. Raw materials required for the project enterprise will be purchased locally.