PROJECT

Projects

Summary of Proposed Investment

Project Number

10423

Company Name

INTEGRATED MICRO-ELECTRONICS BULGARIA EOOD

Date SPI Disclosed

Nov 14, 2000

Country

Bulgaria

Industry

Manufacturing

Projected Board Date

Dec 16, 2000

Status

Completed

Sector

Computer & Electronic Products(Computers & Peripherals, Communications Equip., Elec. Watches & Similar Elec. Products. Integrated Circuits & the application of Miniturization Technologies characterize this sector.)

Department

Regional Industry MAS LAC & EUR

Environmental Category

B - Limited

Previous Events

Approved : Mar 15, 2001
Signed : May 11, 2001
Invested : Dec 14, 2001

Project Description

The proposed project is to modernize and expand the current electronic components manufacturing, assembly, and testing operations of the production facilities of EPIQ-EA and XPEQT, (together "the company"). The project consists of: (i) significantly increasing the production capacity, and adding new technologies, for printed circuit board (PCB) assembly, complex electronic sub assemblies, and testing; (ii) introducing double color and wider application plastic injection moulding; (iii) enhancing the capacity and technical capability of the tooling shop ("the project"). The existing operations in Bulgaria are only the initial phase of a much larger project, and do not realize the full potential of the facilities in Bulgaria to meet the current market demand growth. The company would benefit significantly from the investment, which would significantly broaden the technical scope and product range of the facilities and enable it to further strengthen the Group (includes the ponsors, and their affiliated companies) position in the global contract electronic manufacturing (CEM) market.

EPIQ-EA is limited liability company, founded in 1997, registered in Botevgrad, Bulgaria with a share capital of 1,950,000 BGN, and wholly owned by EPIQ-NV, a public limited company registered in Tessenderlo, Belgium. Its production facility has 3,500 square meters production floor for module assembly and 1000 square meters for assembly, including clean room class 10000, and employs over 500 people. EPIQ EA is QS9000 (1999), VALEO 1000 (1998) and ISO 9002 (1998) certified.

XPEQT (formerly Sigma Delta - Bulgaria) is a limited liability company registered in September 2000 in Sofia, Bulgaria with an authorized share capital of 1,410,500 BGN. It is wholly owned by Sigma Delta Holding N.V. XPEQT specializes in manufacturing of test equipment, and in integrated circuit design and tool making.

IFC’s role in the proposed project is three-fold: (i) increase confidence in and support for the Government’s privatization efforts; (ii) act as a catalyst for foreign investment and private sector participation in Bulgaria; and (iii) help the Sponsors gain access to long-term financing.

By supporting a well managed Bulgarian production facility such as EPIQ EA, IFC would help encourage and enhance local production of high-tech devices in the electronic/semiconductor appliances manufacturing sector. The project is expected to generate significant number of new jobs along with having a spillover effect. Furthermore, it is envisaged that the appropriate terms and structuring of this investment would help encourage other lenders and investors to consider such other projects in Bulgaria. Another benefit of the proposed project to Bulgaria would be in the form of net foreign exchange earnings as the project is export oriented.

Sponsor / Cost / Location

Development Impact