The International Islamic Trade Finance Corporation (ITFC), an autonomous entity within the IDB Group, has signed a $40 million revolving trade financing agreement, amounting to a total of $80 million, with Middle East Complex (MEC), Jordan's leading producer of electric home appliances. The agreement was signed by ITFC CEO Dr. Waleed Al-Wohaib and MEC CEO Osama Al-Khalili during an ITFC delegation visit to Amman, which included meetings with the Prime Minister of Jordan, Nader A. Dhahabi, and Dr. Suhair Al-Ali, IDB governor in Jordan. “MEC is one of the biggest companies in Jordan and this trade financing agreement accords with ITFC's aim to support strategically selected operations that will make a significant beneficial impact on economic development of OIC member countries,” said Al-Wohaib. “By providing the company with trade financing we are facilitating increased production and job creation while at the same time promoting intra-trade among OIC countries. “ Following the signing, Al-Khalili said: “This revolving trade financing agreement will enable MEC to strategically support its operations in readiness for its upcoming expansion program to meet demand across the board.” He said MEC is in the process of establishing a mega project for manufacturing refrigerators, air conditioners and washing machines, which is the first of its kind in the region and has an initial investment of $200 million with projected average annual sales of $300 million and a 27 percent return on investment. The built-up area on the site of the manufacturing facility will be 109,000 m2 on a total land area of 200,000 m2. Mashhour Al-Basha, MEC CFO, said: “MEC plans to continue its ongoing strategy of replacing imported components with in-house produced parts, whereby the company is succeeding in transforming itself from being a semi-knock down operation in which major parts are imported and assembled, to a complete knock down manufacturing process which is automated and requires minimum human input. This strategy has historically proven to be very profitable and is expected to significantly cut down on its imports, transportation, production, and inventory costs. Moreover, this will increase the competitive advantage of MEC both domestically and in the export markets.” MEC specializes in the production, sales, marketing, and after sales service of a comprehensive range of household appliances and components including refrigerators, air conditions, TV sets, LCDs, cookers, washing machines and other home appliances. MEC's products include famous international brands such as LG, Daewoo, and Haier, as well as MEC's own “home grown” brands including: First, Denka, General Star, National Star, MEC and Acma. The ITFC promotes intra-trade among OIC member countries and provides funds for productive development that leads to job creation and capacity building through skills transfers and technical assistance. By redistributing the wealth of rich countries through trade financing ITFC plays a key role in improving the infrastructures and economies of underdeveloped countries, with the overall purpose of implementing IDB objectives to increase prosperity and raise standards of living. The ITFC is an autonomous entity within the Islamic Development Bank Group formed to consolidate financing business that was formerly undertaken by various windows within the IDB Group. The consolidation of the bank's trade finance activities under a single umbrella increases the efficiency of service delivery by enabling rapid response to customer needs in a market-driven business environment. Operating to world-class standards, the ITFC promotes IDB developmental objectives through its two main pillars, Trade Finance and Trade Promotion. __
