An MDF factory of KES Group

KES Group Corporation (KES) is the largest Vietnamese producer of engineered wood panels, focusing on Medium Density Fiberboard (MDF) products and the leading provider of innovative solutions for the construction and interior industry.

The company currently has an annual MDF production capacity of 500,000 cubic metres, an annual flooring production capacity of 6.5 million sq.m and an annual melamine paper printing and dipping production capacity of 40 million sq.m.

According to IFC's disclosure on January 5, the proposed IFC financing will support the company’s vertical integration strategy, provide funding for a new warehouse and maintenance capex and working capital for MDF production. The project is expected to cost $92 million, of which will be funded by $60 million IFC loan; and $32 million from the company’s internal cash generation.

In addition, IFC is exploring an advisory opportunity to support the company on obtaining green building certification for its new warehouse and distribution showrooms.

This financing will help KES realise its vision to become one of the top five Southeast Asian companies in the field of industrial wood by 2026. At the heart of this vision is sustainability. Accordingly, KES constantly seeks and pushes the envelope on its journey to create a solution that balances the finitude of resources and the infinity of human needs sustainably.

The company has chosen the more difficult path of choosing 100 per cent natural wood fibre materials to help improve the quality of life without harming the environment.

As of present, KES owns five wood factories with an area of nearly 1,200,000 square metre and modern machinery systems. In addition, the company also boasts a closed wood production chain from input materials to finished products, ensuring good control of product quality as well as environmental and health protection.