Early Warning System

Regions

East Asia and Pacific

Geographic location where the impacts of the investment may be experienced.

Countries

China

Geographic location where the impacts of the investment may be experienced.

Specific Location

Jiangxi province

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

Asian Development Bank (ADB)

International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.

Project Status

Approved

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

Nov 21, 2025

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.

Borrower

Luli Group; Shandong Panjin Forging Machinery Co., Ltd.; Shouguang Luli Wood Inc.

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

Agriculture and Forestry
Industry and Trade

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, guarantee, technical assistance, advisory services, equity and fund.

Investment Amount (USD)

$ 50.17 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.
Currency conversion note:
Bank reported 356.55
Converted using 2025-11-21 exchange rate.

Project Cost (USD)

$ 100.00 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.

Bank Documents

Media Documents

Primary Source

Original disclosure @ ADB website

Updated in EWS May 2, 2026

Disclosed by Bank Jan 12, 2026

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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.

According to the Bank’s website, ADB is proposing a financing package of up to $100 million equivalent in CNY to Luli Wood for the construction of an OSB (oriented strand board) factory and a captive biomass power plant and related working capital needs in Jiangxi province, PRC. It includes an ADB OCR loan of up to $50-75 million equivalent in CNY (6-year tenor with 1-year grace period), and an ADB-mobilized parallel loan of up to $25-50 million equivalent in CNY, subject to market appetite.

The loans are verified as green loans by a second party opinion (SPO) provider following the eligible categories under the Green Loan Principles. The project is a OneADB collaboration, drawing on the forestry, climate mitigation and circular economy experience from colleagues in AFNR, EARD, and CCSD. The inclusion of ADB's circular economy specialist as a co-team leader and positive engagement with Luli Wood has supported the project's outcomes. AFNR joined the site visit to understand the sustainability of feedstock, manufacturing process and efficiency, and the recyclability of product to maximize circularity.

The project will finance the following investments for Luli Wood: (i) capital expenditures for the land, engineering costs, equipment purchase, and fitting for the construction of an oriented strand board (OSB) factory, including associated facilities (veneering production lines and furniture production lines); (ii) capital expenditures for a captive biomass power plant; and (iii) related working capital needs.

Early Warning System Project Analysis

For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

ADB has categorized the investment in compliance with ADBs Safeguard Policy Statement (2009) as environment (category B).

ADB has categorized the investment in compliance with ADBs Safeguard Policy Statement (2009) as involuntary resettlement (category C).

ADB has categorized the investment in compliance with ADBs Safeguard Policy Statement (2009) as indigenous peoples (category C).

Investment Description

Here you can find a list of individual development financial institutions that finance the project.

Asian Development Bank (ADB)

An ADB OCR loan of up to $50-75 million equivalent in CNY (6-year tenor with 1-year grace period), and an ADB-mobilized parallel loan of up to $25-50 million equivalent in CNY, subject to market appetite.

Private Actors Description

A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Luli Wood was established in 2001 to produce wood panels and began production of OSB in 2016. The company invested in advanced OSB processing equipment imported from Germany.

Founded in 1985, Luli Group initially focused on wood panel business before expanding into the steel industry in 1993. Luli Group is among the top 500 companies in the PRC and the top 100 private companies in Shandong province.

Private Actor 1	Private Actor 1 Role	Private Actor 1 Sector	Relation	Private Actor 2	Private Actor 2 Role	Private Actor 2 Sector
-	-	-	-	Luli Group	Parent Company	-
-	-	-	-	Shandong Panjin Forging Machinery Co., Ltd.	Client	-
-	-	-	-	Shouguang Luli Wood Inc.	Client	-

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.

No contacts available at the time of disclosure.

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.adb.org/forms/request-information-form

ADB has a two-stage appeals process for requesters who believe that ADB has denied their request for information in violation of its Access to Information Policy. You can learn more about filing an appeal at: https://www.adb.org/site/disclosure/appeals

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main.