Fenglin III (IFC-39801)

Countries
  • China
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
Proposed
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Oct 15, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
GUANGXI FENGLIN WOOD INDUSTRY GROUP CO., LTD.
The holder of the loan, grant, or other investment.
Sectors
  • Agriculture and Forestry
  • Construction
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 40.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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, converted to USD$. Please see updated project documentation 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
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
  • International Finance Corporation (IFC)
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
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/