Hanoi, Vietnam, July 6, 2011—IFC,
a member of the World Bank Group, and Japan’s Sumitomo Forestry Company
Limited are co-investing to build a particleboard-processing plant in Vietnam,
helping create jobs in the country’s forestry sector and cutting greenhouse-gas
IFC’s $9 million equity investment
in the plant helps boost Vietnam’s wood-furniture manufacturing sector,
the third-largest in the world, and benefits about 700 farmers along the
wood supply chain. Vietnam’s furniture manufacturing sector faces a shortage
in locally sourced particleboard, one of the major wood products used in
furniture making, and imports 70 percent of its needs.
With an annual design capacity of 250,000
cubic meters, the plant will be able to produce high-quality particleboard
that meets the specifications of major furniture processors. The project
also includes the construction of an 11-megawatt biomass-based power plant
to supply its energy needs, reducing greenhouse-gas emissions.
“We are keen to have IFC as a long-term
shareholder that can support and advise on environmental and social performance
and operational standards that could serve as benchmarks for the Vietnamese
wood-panel industry,” said Toshiro Mitsuyoshi, Executive Officer, Overseas
Business Department of Sumitomo Forestry.
The plant, owned and operated by Vina
Eco Board Company Limited, a joint venture of Sumitomo Forestry Company
and Sumitomo Forestry (Singapore) Limited, is located in Long An province,
a less-developed region in southern Vietnam.
“The forest product sector is a strategically
important sector for IFC, considering its impact on climate change and
development,” said Simon Andrews, IFC's Regional Manager for Vietnam,
Lao PDR, Cambodia, and Thailand. “IFC is committed to work with Sumitomo
Forestry to promote environmental and social sustainability in the forestry
and forest product sectors in Vietnam and other developing countries.”
For more information on Sumitomo Forestry
Company, visit www.sfc.jp.
IFC, a member of the World Bank Group,
is the largest global development institution focused on the private sector
in developing countries. We create opportunity for people to escape poverty
and improve their lives. We do so by providing financing to help businesses
employ more people and supply essential services, by mobilizing capital
from others, and by delivering advisory services to ensure sustainable
development. In a time of global economic uncertainty, our new investments
climbed to a record $18 billion in fiscal 2010. For more information, visit