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Press Release

Monday, December 18, 2006

U.S. Small Business Uses OPIC Loan to Expand Dairy Manufactory in Republic of Georgia

WASHINGTON, D.C. – A U.S. small business will use a loan from the Overseas Private Investment Corporation (OPIC) to expand manufacturing operations at the largest producer of dairy and juice products in the Republic of Georgia, in the process transferring technology that will benefit both the company and the dairy industry in Georgia.

OPIC’s $4 million loan will enable Sante GMT Products, owned in part by five U.S. investors, to establish ten new milk collection centers; upgrade and add equipment for production lines; boost its marketing efforts; and improve its distribution network. The project is expected to generate 90 permanent local jobs and approximately $3.4 million in tax revenue for the Georgian government over five years.

Part of the upgrade will involve installation of state-of-the-art technology enabling Sante GMT to convert to use of natural milk, rather than milk powder, for its production cycle. Natural milk is not only less expensive, but enables the company to produce a fuller range of dairy products utilizing all milk byproducts. Consequently, Sante GMT will expand its production of butter and cheese, and revive production of yogurt and mayonnaise.

“This project will significantly upgrade the Republic of Georgia’s agricultural infrastructure, delivering important economic and health benefits to an industry vital to Georgia’s population,” said OPIC President and CEO Robert Mosbacher, Jr. “OPIC is pleased to work with a U.S. small business on a project with so many positive developmental benefits.”


OPIC is the U.S. Government’s development finance institution.  It mobilizes private capital to help solve critical development challenges and in doing so, advances U.S. foreign policy.  Because OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in emerging markets catalyzing revenues, jobs and growth opportunities both at home and abroad.  OPIC achieves its mission by providing investors with financing, guarantees, political risk insurance, and support for private equity investment funds.

 

Established as an agency of the U.S. Government in 1971, OPIC operates on a self-sustaining basis at no net cost to American taxpayers. OPIC services are available for new and expanding business enterprises in more than 150 countries worldwide. To date, OPIC has supported nearly $200 billion of investment in over 4,000 projects, generated $74 billion in U.S. exports and supported more than 275,000 American jobs.