DEG provides loan to producer of eco-friendly wooden toys

• Hape expands capacity in China
• World leader in the field of wooden toys
• Environmentally and socially sound production

The toy manufacturer Hape is further expanding its logistics operations and storage capacities in China. DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, provides Hape International Ningbo Ltd. (Hape) with a long-term loan of EUR 10m, earmarked for a logistics centre in the seaport city of Ningbo. In addition, the company is developing a bamboo research institute and its production of wooden components in Guizhou, one of China's poorest provinces.

The Hape Holding AG, founded in 1986 by the German entrepreneur Peter Handstein, is today known as the world’s largest producer of educational wooden toys. The group also includes the German Kaethe Kruse GmbH. Hape produces wooden toys for renowned brand producers and has developed its own brand "Hape" as another key area of activity. The logistics centre, which is to be located close to the port, is Hape's response to increased demand from China, the United States and Europe.

The group currently employs around 1,500 people worldwide and sells to over 60 countries. About 7,500 jobs are additionally secured with Hape's supplier companies, mostly situated in rural locations in China. Only renewable raw materials and water-based colours are used for production. In 2005 a full line of bamboo toys has been introduced. Hape places particular emphasis on energy-efficient production, and eco-friendly packaging and sewage water treatment.

By supporting Hape, DEG accompanies a long-time customer that excels by its social and environmental commitment. Hape not only pays wages far above the national average, but also offers benefits such as lunch and housing allowance, and transport to work. It additionally provides the staff with different vocational and training measures, e.g. on quality management.

On top of its investment financing, DEG provided Hape with funds from the develoPPP.de Programme of the Federal Ministry for Economic Cooperation and Development (BMZ). These funds were used to co-finance, among others, qualification measures for bamboo farmers and processors, as well as for small and medium-sized wooden toy producers.