Fenglin III (IFC-39801)

  • China
Geographic location where the impacts of the investment may be experienced.
Specific Location
Nanning, Guangxi Autonomous Region
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Oct 15, 2017
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
  • Agriculture and Forestry
  • Construction
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 40.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 80.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Oct 6, 2017

Disclosed by Bank Sep 13, 2017

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.
The proposed IFC investment is for construction of a Particle Board (PB) factory, for the Guangxi Fenglin Wood Industry Group Co., Ltd., (“Fenglin” or the “Group”) located in Nanning, Guangxi Province, the Peoples Republic of China (PRC). The group has four facilities, three located in Guangxi Province, and one located in Guangdong Province, with over one hundred separate plantations (with a total forest estate of 14,897 hectares) in Guangxi Province. The current production demand is 800,000 m per annum, of raw waste wood (comprising of timber harvest residues, chips, and offcuts from the wood processing sector) for production inputs. Following this investment group raw waste wood demand is anticipated to rise to over 1.1 million m 3 per annum. The group subsidiaries rely on a network of approximately 792 suppliers and aggregators within an average 150 km radius from each facility. The loan proceeds will be used to construct a new factory on an existing brown field site, of the Medium Density Fiberboard (MDF) factory (formerly operated by the group, “Parent” the Guangxi Fenglin Wood Industry Group Co.,), and for working capital. The construction phases include: (i) decommissioning, and equipment removal from existing factory; (ii) demolition of existing buildings; (iii) leveling and foundation preparation; followed by, (iv) construction of the new PB facility. All actions will be conducted on the former MDF factory site foot print and have a duration of 18 months. By adopting modern technologies, the new PB factory will become one of the largest PB manufacturing facilities in the PRC with the capability to manufacture formaldehyde emission free PB. The production process of MDF and PB involves blending chipped raw wood fiber with adhesives and bonding agents, drying, pressing and extruding. The MDF and PB manufacturing line is automated, with manual labor required at the front end (handling of raw waste wood fiber inputs) and at the back end (handling of finished panels).
Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Fenglin was listed on the Shanghai Stock Exchange (Stock Code: 601996) on September 29, 2011. It is headquartered in Nanning, and has operations in Guangxi and Guangdong Provinces. The Project Sponsor is Mr. Yichuan Liu, the founder and the key shareholder of the Company. The Company is 47.9% owned by Fenglin International Limited, with the rest by small shareholders and public.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.
Guangxi Fenglin Wood Industry Group Co., Ltd. Mr. Wei Xiaobo Deputy Manager, Finance Department +86 0771-4016666-8636 xiaobo.wei@fenglingroup.com 22 Baisha Avenue, Nanning, Guangxi, 530031, China www.fenglingroup.com ACCOUNTABILITY MECHANISM OF IFC The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

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