Project Overview
Kailu Group is the second largest wood processing company in Europe and the largest pine processing company in Europe, with its processing center in Thuringia, Germany, being the largest in the world.
The company has seven branches worldwide, with clients including Ikea, Home Depot, Lowe’s,
84 Lumber, Resolute, Canfor, Weyerhaeuser, High Hope, SUMEC, and others. Due to the strong demand for construction timber, especially in North America, Kailu has decided to establish a wood processing production line in the United States.
The project is located in the rich timber forest area of Suwannee County, Florida, providing abundant and inexpensive raw timber resources for the wood processing plant. The project site is close to railways and major interstate highways, with deep-water ports within 100 miles facilitating the transportation of wood products to any destination in North America and for export overseas; the project site is part of Florida's "Economic Catalyst Zone," with the Florida state government and local county governments investing over $16 million to level the land and construct supporting road infrastructure and various support services.
Kailu's highly automated production line equipment can flexibly produce both imperial and metric wood products, and can only produce imperial-sized finished products, making it more competitive than its North American counterparts; Kailu's production efficiency and wood processing yield are significantly higher than those of its American peers; moreover, Kailu will sell various scraps generated during production to various related enterprises in the area of the wood processing plant to improve raw timber utilization.
Use of Funds
Kailu plans to raise a minimum of $15 million and a maximum of $49.5 million from EB-5 investors for the construction of Kailu's first phase wood processing plant in North America. The EB-5 limited partnership will obtain the first priority mortgage on all project real estate. The loan term is 5 years.
Employment Situation
The RIMS II model estimates that the construction and operation of the project will create 2,305 jobs, with the maximum financing amount requiring 990 jobs for investment immigration, resulting in an employment multiplier of 2.32.
EB-5 Fund Exit
There are multiple options for fund exit: repayment through the operating cash flow of the wood factory; refinancing repayment; selling the wood processing plant, with part of the sale proceeds used for repayment.
