Established in 1972, Faber has grown to become the leader in the production of seamless steel and composite gas cylinders for medical and industrial applications (oxygen, nitrogen, and hydrogen tanks), leisure (scuba diving), and compressed natural gas (CNG) vehicles. Faber is known for its high quality standards and capability to comply with the most stringent specifications. Faber has four plants located in Italy with a production capacity of one million cylinders per year.

The total project cost is estimated at EUR50 million. IFC has been requested to provide a loan of up to EUR20 million for its own account.

26.16 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	26.16
Equity

* These investment figures are indicative

The Project is located in the Eastern Seaboard Industrial Estate, Thailand.

Technology transfer: As a leading producer of seamless cylinders for the storage of high-pressure gases, Faber uses state-of-the-art technologies and efficient processes, which will be installed in Thailand. Local staff will be trained to a new, highly competitive standard in manufacturing processes and management. While most gas tanks are made with welded cylinders, Faber produces seamless cylinders using precision technology that empties out a steel profile into a shell and seals it into a tank shape. Faber has developed its own safety control processes.

Climate change: Compared with traditional vehicles, compressed natural gas (CNG) vehicles provide for reductions in carbon monoxide emissions of 90% to 97%, and in carbon dioxide emissions of about 20%.

Other environmental benefits: Combustion of natural gas rather than gasoline in vehicles results in reduced emissions of toxic and carcinogenic compounds and virtually eliminates particulate emissions.

Import substitution/improved access to CNG vehicles: Currently automotive plants in Thailand import high-quality, seamless cylinder parts that are not locally available. The Project''s production will lead to import substitution and contribute to the country''s economic growth. Improved access to CNG vehicles will translate into higher incomes for micro, small and medium enterprises and taxi operators, based on lower operating cost of CNG vehicles, which will contribute to inclusive growth.

Job creation: The Project is expected to create direct and indirect jobs in Thailand.

Risk mitigation/long-term partnership: The Project is one of the first significant investments in emerging markets for Faber, a family-owned company. Faber expects to benefit from IFC''s experience in Thailand, and, more broadly, in emerging markets. IFC is well-positioned to support Faber globally as it expands into other emerging markets.

Counter cyclical role: The availability of long-term financing for mid-size European companies, especially for greenfield projects in the emerging markets, is constrained due to the crisis in Europe, and pending new capitalization rules for banks.

Demonstration effect: The Project will demonstrate a strong momentum and growth potential of the CNG vehicle market. The Project will also promote the recovery from the flood in Thailand and send a positive signal to the market.

Facilitate technological transfer: IFC is to help Faber transfer innovative technology new to middle income countries to help them keep up with global value chains.

This is a Category B project according to IFC’s Environmental and Social Review Procedure as the potential adverse environmental and social impacts presented by the project are few in number, site-specific and have been or can be readily addressed through mitigation measures.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.