Environmental Review Summary
Project Number
20744
Company Name
Grupo M SA
Date ERS Disclosed
May 2, 2003
Country
Dominican Republic
Region
Latin America and the Caribbean
Date Revised ERS Disclosed
Apr 1, 2005
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Oct 9, 2003
Signed : Jan 16, 2004
Invested : Mar 22, 2004
Sector
Garment and Apparel (Without Fabric , Excluding Footwear)
Industry
other
Department
Gbl Ind, Manufact, Agribus & Services
Project Description
This project will provide corporate financing to Grupo M, a vertically integrated apparel manufacturer in the Dominican Republic (DR) producing knits and woven products for the US market, to finance ongoing capital expenditures, long term working capital needs and to refinance existing obligations, as well as a loan to finance an export zone (Zona Franca) promoted by Grupo M focusing on garment production in the Republic of Haiti.
Founded in 1986, Grupo M is the largest private sector employer in the DR with 12,000 employees working in 22 production facilities (including JVs) and is the largest apparel producer in the Caribbean/Central American area. Grupo M is a supplier to major US brand name companies including Liz Claiborne, Polo, Levis, Hanes and Tommy Hilfiger. In March 2002, Grupo M acquired Tee Jays, a brand name t-shirt and casual clothes company based in Alabama, USA and supplier to Wal-Mart.
The Haiti Zona Franca Project is a phased development of a 500,000m2 site on the border of Haiti and DR. Phase 1 of the investment program will develop an area of 150,000m2 including
- site clearing and access roads and utilities,
- training center, staff facilities (medical services and cafeteria) and customs clearing offices, and
- 3 factory buildings owned by Grupo M which will produce garments for Levis, Dockers and Tee Jays, with completion expected in December 2003. (One factory, the administration building, cafeteria, clinic and training center will be completed by July 2003). When complete, Phase 1 will generate 1,500 direct jobs and up to 3,000 indirect jobs for Haitian workers in the adjacent area.
If successful, Phase 1 of the Haiti Project should generate demand from outside customers producing apparel, footwear and other products who would lease or purchase facilities built to order by the zone development company, which will be 100% owned by Grupo M. The second phase of development, which would build up to 11 more buildings depending on demand, together with Phase 1 would generate 21,000 direct and indirect jobs. The total site area would allow up to 40 factory units providing as many as 20,000 direct jobs and 40,000 indirect jobs in further phases.
Founded in 1986, Grupo M is the largest private sector employer in the DR with 12,000 employees working in 22 production facilities (including JVs) and is the largest apparel producer in the Caribbean/Central American area. Grupo M is a supplier to major US brand name companies including Liz Claiborne, Polo, Levis, Hanes and Tommy Hilfiger. In March 2002, Grupo M acquired Tee Jays, a brand name t-shirt and casual clothes company based in Alabama, USA and supplier to Wal-Mart.
The Haiti Zona Franca Project is a phased development of a 500,000m2 site on the border of Haiti and DR. Phase 1 of the investment program will develop an area of 150,000m2 including
- site clearing and access roads and utilities,
- training center, staff facilities (medical services and cafeteria) and customs clearing offices, and
- 3 factory buildings owned by Grupo M which will produce garments for Levis, Dockers and Tee Jays, with completion expected in December 2003. (One factory, the administration building, cafeteria, clinic and training center will be completed by July 2003). When complete, Phase 1 will generate 1,500 direct jobs and up to 3,000 indirect jobs for Haitian workers in the adjacent area.
If successful, Phase 1 of the Haiti Project should generate demand from outside customers producing apparel, footwear and other products who would lease or purchase facilities built to order by the zone development company, which will be 100% owned by Grupo M. The second phase of development, which would build up to 11 more buildings depending on demand, together with Phase 1 would generate 21,000 direct and indirect jobs. The total site area would allow up to 40 factory units providing as many as 20,000 direct jobs and 40,000 indirect jobs in further phases.
Environmental and Social
Conclusion & Monitoring
Related SPI
