BUSINESS AND OTHER SERVICES

The project involves a loan of up to EUR 8 million to finance Key Safety Systems ("KSS" or "the company") airbag cushion production plant in Macedonia. KSS is a global leader in the design, development and manufacturing of automotive safety-critical components and systems including inflators, airbags, steering wheels and seat belts. The company`s products are featured in more than 300 vehicle models produced by over 60 customers worldwide. The company is headquartered in Michigan, United States and has a global network of 29 sales, engineering, and manufacturing facilities. The company plans to relocate the production of airbag cushions from Romania and Mexico, to Kichevo, Macedonia so as to reduce inventory and freight cost and provide flexibility for European Union customers. Both plants in Mexico and Romania will continue to produce airbag modules and will utilize the areas made available from the cushion assembly toward new product lines. KSS has already rented and renovated a facility in an existing light industrial area in Kichevo for establishment of a temporary plant i.e., the brownfield operation. The intention is to commence operations at this facility in January 2015 and once the greenfield development as referenced below is complete, this facility will be closed and all activities transferred to the new facility i.e., the greenfield development. The existing industrial area where the brownfield plant is located is around 200 m distance from the nearest residential area in Kichevo, whereas the greenfield development will be located in a new Technological Industrial Development Zone located some 800 m distance from the nearest residential area in Kichevo. This area has been planned as a free trade zone by the Kichevo municipality who will provide the necessary infrastructure. The construction period for the greenfield plant is approximately 9 months with project commissioning planned for the latter part of 2015. The initial project phase will focus specifically on airbag cushion manufacturing which involves material cutting, sewing of cushions and testing the final product. Both brownfield and greenfield plants will have similar manufacturing processes that include raw material and finished goods storages, cutting units, sewing process lines, maintenance units, administrative offices, cafeteria, locker rooms for men and women workers, and utilities. All airbag cushions produced in Macedonia will be transported to KSS Arad in Romania where they will be assembled with an inflator, tested and exported.

Macedonia