Tigar

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The project supports the growth and strategic development of Tigar Rubber Products Company, a leading tyre and rubber goods producer in Yugoslavia and the Balkans. After a decade of war and international isolation, the company''s production capacity and product competitiveness have been substantially challenged. Despite its difficult environment, Tigar succeeded in continuing its operations and managed to carry on its long lasting commercial-technical Joint Venture (JV) with BF Goodrich and, since 1997, with Michelin Tires of France after Michelin North America''s acquisition of Goodrich. Tigar''s tyre business represents about 75% of Tigar''s turnover, the balance being generated by production of footwear, industrial technical rubber products, sport goods, adhesive and paints. The project involves: (i) debottlenecking and expanding its tire production capacity which currently operates at 100% capacity and completing process improvements which allow production of Michelin brand premium high speed tires, increasing production from 10,000 tyres/day to 16,500 tyres/day by end 2002; (ii) balance sheet restructuring to better match assets and liabilities, namely provide urgent working capital and refinancing of short term bridge loans; and (iii) assisting Tigar in restructuring non-core businesses and assets through a parallel technical assistance program financed by bilateral donors. IFC will provide Tigar a corporate loan for these purposes.