Beijing, September 24, 2014
—IFC, a member of the World Bank Group, will provide 186 million yuan (about $30 million) to Guangxi Fenglin Wood Industry Group Co., a leading Chinese wood-panel manufacturer, to extend its geographic reach and the range of its environmentally sustainable products. The project will create jobs and support the sustainable development of China’s forestry industry.
The five-year local-currency loan will help Fenglin complete construction of a new 200,000 cubic-meter medium-density fiberboard manufacturing facility in Guangxi, a less-developed autonomous region in southern China, and upgrade a 200,000 cubic-meter particle-board plant in Guangdong province.
“IFC’s loan enables our company to access long-term financing that is not readily available in the market and is key to our strategic development and expansion plan,” said Cui Jianguo, Chairman of Fenglin. “The new plants will help us offer complementary products lines and improve our economies of scale. We can therefore manufacture more environmentally friendly products and provide jobs to the local communities.”
Fenglin, which has been listed on the Shanghai Stock Exchange since 2011, is one of the leading medium-density fiberboard manufacturers in China and serves major furniture, flooring, door, and decoration companies across China. Fenglin’s products have received California Air Resources Board (CARB) certification and met China’s E0/E1 designation – both are the highest standards for toxic control of formaldehyde. Since IFC began working with Fenglin in 2004, the company has continuously improved its corporate governance and sustainability practices.
The project is expected to help Fenglin promote its sustainable, low-carbon, and environmentally friendly panel products to the market. The new plants will make use of scrap wood and residual waste as their primary raw material, thus promoting resource efficiency as well as sustainability. More than 200 direct jobs are expected to be created at the company’s plants and benefit about 2,000 farmers who earn money from collecting and supplying waste wood.
“By supporting a market leader in a frontier province of China, we help to improve the livelihoods of local workers and encourage wood manufacturers to adopt sustainable practices,” said Karin Finkelston, IFC’s Vice President for Asia Pacific.
China produces more than 60 percent of the world’s wood panels and other related products. It is the biggest exporter followed by Germany, Italy, Poland, and the United States. China’s domestic consumption of wood panels has also increased markedly in recent years, boosted by its housing and interior decoration markets. IFC supports projects that promote the sustainable management of forests in China.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit
www.ifc.org
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