Khai Vy

completed

_x000C_ Khai Vy Corporation and Duyen Hai Corporation – known collectively as KVC – together make up one of Vietnam’s largest furniture manufacturers producing and exporting outdoor and indoor furniture to the Asian, European and North American markets. KVC is seeking financing from IFC for the expansion of permanent working capital and the refinancing of short-term debt. A small component of the financing would be directed towards additional capital expenditure. KVC operates four manufacturing facilities. The Khai Vy Factory was established in Ho Chi Minh City in 2001 on a 70,000 m2 site leased from the government in a zoned industrial-use area of District 7. This factory specializes in the fabrication of indoor wood and aluminum/wood furniture as well as furniture cushions. Until this facility is at full capacity for indoor furniture, the Khai Vy Factory also manufactures outdoor furniture. The factory is equipped with a sawmill, kilns for drying sawn timber, wood working, assembly and finishing units as well as an aluminum components fabrication unit, cushion making unit and a packing unit. Three other factories are located in the central Vietnamese province of Binh Dinh, near the traditional furniture making area and port city of Qui Nhon. The Duyen Hai 1 Wood Processing Factory was established in 1999 on a 35,000 m2 site in the Phu Tai industrial zone. The Duyen Hai 2 Wood Processing Factory and Duyen Hai 3 Wood Processing Factory are co-located in a 100,000 m2 site within the newly established Long My industrial zone. Construction of these factories was completed in August 2004. The Duyen Hai facilities are dedicated to the production of outdoor furniture. The Long My complex is equipped with a saw mill, kilns for drying sawn timber and units for wood working, assembly, finishing and packing. The Long My complex also provides sawn timber to the Duyen Hai 1 factory. The company also operates a sawmill in Binh Phuoc province with a capacity of 1,200 m3 that processes Rubber wood procured from government rubber plantations.