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China : IFC Finances Chinese Automation Technology Company to Improve Transport and Energy Efficiency

June 24, 2014

IFC, a member of the World Bank Group, has agreed to provide a $20 million convertible loan to Hollysys Automation Technologies Ltd. to help it further expand in China and to other parts of the world. The deal aims to promote smart solutions in the industrial and transportation sectors to raise operational and energy efficiency.

Over the past two decades, Nasdaq-listed Hollysys has helped provide its automation solutions to over 5,000 companies across a wide range of industries, including railway, subway, electric power, renewable energy, chemical, paper, and cement processing, to improve their operational efficiency, safety, and reliability. The company is one of the top automation technology companies approved by China s railways authorities in the high-speed rail signaling segment.

These technologies play an important role in helping China and other emerging markets to pursue greener urbanization and address climate change by raising the performance of key infrastructure projects, such as the railway, subway, and power.

We believe our cooperation with IFC will facilitate our development from a leading domestic automation and control-technology company into a well-recognized global player, said Hollysys management. Leveraging IFC s global network and industry expertise, we will continue to expand overseas and strengthen our research and development team to create even greater value for our shareholders.

Hollysys has around 3,800 employees 900 of which are research and development staff in more than 60 Chinese cities with subsidiaries and offices in Singapore, Malaysia, Dubai, and India. The company expects the overseas markets to generate a third of its revenue in five years.

IFC's financing will help support the growth of Hollysys, which plays a critical role in large industrial and rail transportation projects in China," said Vipul Prakash, IFC Director for Manufacturing, Agribusiness and Services for Asia Pacific. IFC looks forward to establishing a long-term partnership with Hollysys and supporting its expansion in other emerging markets.

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Source: TendersInfo (India)

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