Wuxi BWF Environmental Technology Co. Ltd.

MIGA issued $3.8 million in coverage in separate guarantee contracts for equity and loan investments made by BWF Unternehmensbeteiligungen GmbH (BWF) of Germany for a filtration needle felt manufacturing facility in Jiangsu Province. MIGA previously insured BWF's initial investment in the plant during fiscal 1997. BWF's new contribution was used to buy out the local joint venture partner. MIGA coverage is issued against the risks of expropriation and war and civil disturbance.

The facility produces and sells specialized polyester fiber filtration needles for industrial dust extraction and waste gas purification. Wuxi BWF is expected to produce approximately 50 percent of China's filtration needle felt in the next two years and will be a leading manufacturer of the product in the region.

The project enterprise will benefit from transfer of technology and know-how in needle felt manufacturing, especially in production procedures using modern quality control and maintenance systems.

A majority of the output will be exported to Asian countries, including Japan, the Republic of Korea, Malaysia, and Thailand. The project will create about 130 jobs for local nationals, and all supplies and critical raw materials required for production will be purchased from local suppliers.