Bio ZMZM for Plastic Industries

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Project Description On September 5, 2013, the MIGA-administered West Bank and Gaza Investment Guarantee Trust Fund issued guarantees totaling $1.8 million to Adrianus Jacobus Tukker of the Netherlands and ZMZM for plastic industries of the West Bank covering their equity investments in Bio ZMZM for Plastic Industries in the West Bank. The coverage is for a period of up to 10 years against the risks of transfer restriction, expropriation, and war and civil disturbance. The project involves the establishment of Bio ZMZM for Plastic Industries (Bio ZMZM), a joint venture in the West Bank currently owned by Adrianus Jacobus Tukker who is representing Dutch Printing Innovations BV of the Netherlands (30 percent) and ZMZM for plastic industries (ZMZM) of the West Bank (70 percent). The joint venture plans to create a production facility for biodegradable plastics that expands upon ZMZM's current plastics business. A new production facility to produce biodegradable plastics, including a factory, warehouse, and office, will be established on the premises of ZMZM in Hebron, near its current factory. The production facility will use blown extrusion technology, using a combination of virgin plastic resin/granule, recycled material, and additives. Production will initially focus on agricultural plastic sheets and drawstring garbage bags intended for the local market as well as export to Israel, Turkey, and Jordan.  This project is being supported by the PSI Plus program of the Netherlands Ministry of Foreign Affairs with a grant to cover up to 60 percent of the project cost and an additional amount to cover the MIGA political risk insurance premium for the first three years. The expansion is expected to create more than 40 new jobs during the first two years. A training program will substantially increase the knowledge level of employees and improve their competitiveness and employability. Technological knowledge on biodegradable plastics will also be shared with local companies and institutes, including Hebron University. This project is aligned with MIGA's objective of facilitating investments in conflict-affected environments as well as entities eligible for assistance from the International Development Association. The project was underwritten through MIGA's Small Investment Program.

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