PROJECT

Projects

Summary of Proposed Investment

Project Number

11581

Company Name

Fabrinet

Date SPI Disclosed

May 23, 2002

Country

Thailand

Industry

Manufacturing

Projected Board Date

Jun 23, 2002

Status

Completed

Sector

Computer & Electronic Products(Computers & Peripherals, Communications Equip., Elec. Watches & Similar Elec. Products. Integrated Circuits & the application of Miniturization Technologies characterize this sector.)

Department

Gbl Ind, Manufact, Agribus & Services

Environmental Category

B - Limited

Previous Events

Approved : Jun 28, 2002
Signed : Dec 22, 2003
Invested : Jul 16, 2004

Project Description

The proposed project consists of upgrading the technology and expanding the production lines of Fabrinet. Established in August 1999 as a spin-off from Seagate, the company became operational in January 2000. Fabrinet is a provider of contract assembly services and specializes in the production of components for two main customer segments: magnetic memory mass storage, and optical devices. The project will enable the company to: service higher technology requirements for its customers; generate additional programs from its customers; and support for increasing orders from existing and new optical component customers.

Development Impact
  • The project is expected to bring about significant benefits to consumers by improving the quality, reliability, and cost structure of the end-product into which the Fabrinet''s output is assembled;
  • The proposed transaction is IFC''s first re-engagement in Thailand''s manufacturing sector after several years of cautiously watching the overall developments in the country; and
  • The project is expected to demonstrate that IFC remains a viable source of long-term financing in Thailand for corporates with good management and solid business fundamentals.

IFC''s Role
  • IFC will provide long-term foreign currency financing which is not available to the company in the local market. IFC''s long-term financing will enable better matching of cash flows, generated from the investment project, with the debt service obligations. IFC''s investment will allow the company to acquire the necessary technology to remain competitive and retain and expand its customer linkages; and
  • IFC''s investment supports a high profile provider of electronic manufacturing services which is also a key producer in the supply chain of Thailand''s computer hard disk drive manufacturers. Overall, the electronic manufacturing services sector in Thailand has been an important engine for economic growth for the past decade and, in recent years, computer hard disk drives have consistently represented around 10% of Thailand''s total annual exports.

Sponsor / Cost / Location

Development Impact