Article Number : 3545 |
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| Date | 8/13/2008 9:05:41 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=3545 |
| Abstract | DOWNINGTOWN, PA.—Nature, one of the largest wood flooring manufacturers in China has received a cash infusion of $50 million by the World Bank Group’s International Finance Corp. (IFC)... |
| Article | DOWNINGTOWN, PA.—Nature, one of the largest wood flooring manufacturers in China has received a cash infusion of $50 million by the World Bank Group’s International Finance Corp. (IFC). The purpose of the investment is to help develop the company’s sustainable wood sourcing and promote sustainable development of the flooring industry. Dimitris Tsitsiragos, IFC director for global manufacturing and services, said, “The project will not only help Nature obtain sustainable sourcing and improve resource efficiency, it will help consolidate and rationalize China’s flooring industry.” Se Hok Pan, Nature’s chairman, said the investment will help Nature implement its growth strategy in the next three years. “IFC is not only providing Nature with long-term financing, but more importantly offering strategic views to help China’s wood companies grow in a sustainable way. IFC’s standards will also help us become a responsible corporate citizen where we operate around the world.” Nature, which earlier this year became the latest Chinese flooring manufacturer to set up shop in the U.S. (FCNews, Jan. 28/Feb. 4), has eight factories throughout China as well as in Peru. Judy Grillo, general manager of Nature’s U.S. business, called the World Bank announcement, “Good news for Nature’s U.S. office. This really demonstrates confidence in the Nature brand name, the depth of our product line, the ability to service our customers and our commitment to the environment.” The company’s investment program which began last year and is expected to be implemented through 2010 includes expansion of production plants, establishment of new manufacturing facilities for the production of engineered and laminate flooring, backward integration into the production of veneers and core, production of medium density fiberboard, development of plantations in China, and continued investment in its brands and distribution channels. The cost of the project is estimated at $120 million. IFC’s proposed investment includes a quasi-equity/equity investment of $20 million and a long-term loan of up to $30 million. IFC’s expected development contribution includes: • Offering long-term financing (access to finance). • Upgrading the company’s governance practices in preparation for an initial public offering. • Providing strategic support and advice to the company in environmental and social areas. • Sending a strong signal to the market of the private sector in raising finance to develop sustainable industries. • Sharing IFC’s experience with the company about making investment in underdeveloped areas in China. Partnering with Nature to help address the challenges of sustainable wood sourcing is something that is core to IFC’s strategy in China, noted Richard Ranken, IFC’s director for East Asia and Pacific. “Responsible stewardship of natural resources is a business fundamental. Those who ignore it will find themselves displaced by more efficient competitors or excluded from key markets.” Pan added this partnership will help position the company as a leading player and bring economic benefits to local areas. In addtion, he said Nature plans to increase its independently certified wood, with a goal of 100% certification by the end of 2011. The China Forest Trade Network, the national body of the World Wildlife Fund’s Global Forest and Trade Network, will regularly assess the company’s progress on these targets. “Sustainable sourcing promotes sustainable forest management, which allows for wood production without deforestation and does not contribute to climate change.” IFC officials noted Nature’s commitments to the China Forest Trade Network on wood sourcing will make it one of the first to adopt strict standards and will establish it as a leader on sustainable management practices. The investment is part of IFC’s mission to foster sustainable economic growth in developing regions. IFC’s vision is people have the opportunity to escape poverty and improve their lives. For more information about Nature, please call 610.873.6140. To learn more about the IFC, visit www.ifc.org. |