Sika Silk Company Limited

MIGA issued equity guarantees totaling $2 million to Pepsi-Co, Inc.; Ratti Technologies S.r.L.; and Shinwha Textile Company, Ltd., against the risks of currency transfer, expropriation, and war and civil disturbance, to cover their respective investments in Sika Silk Company Limited in China. The project is a joint venture between six companies from China, Italy, Korea, and the United States and will be located 60 kilometers from Chengdu in the Sichuan province.

Both Ratti (an Italian company) and Shinwha (a Korean company) are world leaders in the production and processing of silk, and each has a 15 percent stake in the venture. They will provide the project with their expertise in engineering, technology, marketing, and management. Ratti will also provide Italian machinery and introduce more modern technological standards than those currently used in other silk processing plants in Sichuan. Pepsi-Co has a 21 percent stake in the venture.

Local government-owned investors, who will hold a 49 percent stake in the venture, will provide raw silk for the project. The project is expected to create 130 new local jobs and will have a positive impact on the domestic economy. In addition, employees will be trained at Ratti's state-of-the-art silk processing facility in Como, Italy.