Morris Hong Kong

completed

 The proposed project supports the operations and expansion of Morris Holdings Limited (“Morris” or the “Company”), a manufacturer and exporter (mainly to the United States of America (USA)), and also sold domestically in The Peoples Republic of China (PRC)) of wooden frame sofa’s and sofa covers. Morris’ core business includes design and manufacture of wooden frame sofas covered with leather or upholstery.  In addition, Morris produces other types of furniture including upholstered wooden chairs and desks. IFC is considering a loan, convertible into equity, of up to US$26 million to support the company’s ongoing operations and expansion activities (the “project”). The company’s current operating production facilities are located within an industrial park, located in Haining city, Zhejiang province (PRC). Morris recently completed construction of a production facility in Cambodia located in the Sihanoukville Special Economic Zone (SSEZ). This constructed facility had not initiated operations at the time of the IFC environment and social due diligence.  The process of manufacturing wooden frames and sofas includes: (i) sawing and trimming of wood products to designed shape; (ii) assembly of trimmed pieces with both adhesives and nails; (iii) cutting, sewing and forming leather/upholstery and filling with polyurethane foam; (iv) basic assembly of components; and, (v) packing and dispatch.