Hong Kong SAR, China, January 22, 2018
—IFC, a member of the World Bank Group, has committed a convertible loan of 200 million Hong Kong dollar (or $26 million) to Morris Holdings Limited, a Chinese manufacturer of affordable furniture, for its expansion in Cambodia and China. The project will help raise productivity in the wood products sector in both countries, and promote regional integration through south-south investments.
IFC’s investment will help Morris complete the installation of a modern production facility in Cambodia’s Sihanoukville Special Economic Zone. Subsequently, the facility will create jobs for approximately 800 Cambodians while connecting the country’s nascent furniture industry with the global market.
“IFC’s partnership will provide us with the funding, and environmental and social standards setting, along with local knowledge that we need to implement our first overseas project,” said Morris Zou, CEO and Chairman, Morris Holdings Limited. “It is an integral part of our strategy to increase productivity and global competitiveness.”
Morris will also build a new plant in China’s Zhejiang Province to increase its production by 30 percent in order to meet growing demand. It is currently the second largest upholstered sofa manufacturer in China in terms of its export value to the U.S. market.
“Cross-border transactions between developing countries remain a vital engine in sustaining growth and creating opportunities in our region “ said Vivek Pathak, IFC Director for East Asia and the Pacific. “This project is a great example of how IFC is supporting an international player to expand in Cambodia. It will also allow us to help Cambodia diverisfy industries in addition to textiles and garments, and support productivity-led growth in China.”
Supporting cross-border investments is one of IFC’s priorities in East Asia and the Pacific. IFC is also helping Acleda Bank Plc, a leading commercial bank in Cambodia, expand its financial services to the Lao People’s Democratic Republic and Myanmar, improving access to finance for the poor and smaller businesses in the Mekong region.
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit
www.ifc.org
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