Green Valley Industrial

Park:
Honduras Business Case

 Executive Agenda

 Why manufacture in Honduras?

  Decision Matrix

  Green Valley Industrial Park

 Who we are

  Green Valley Industrial Park Infrastructure

  Energy

 Water treatment

  Grupo Karims and GVIP core capabilities

  Grupo Karims ad GVIP as Strategic
Partners

  Textile cluster

The best supply chains aren’t just
fast and cost effective

They are also agile and adaptable,

and they ensure that all their
companies’ interests stay alligned.

 Decision Matrix

Market
Energy Attractiveness Labor Strategic
Tax
Logistics
/ Textile Availability Partnerships

Cost
incentives

Cluster
Training

Best Option
Honduras
Honduras
Honduras/ES
Honduras


El Salvador Honduras

Largest Peoples
Honduras

Hydro Synthethics Most ZIP Choloma,

seaport, are growing: complete demonstrated
source: skils, presence
Grupo Karims,
0.10 KwH
US SCM incentives Green Valley,

Average: 5/6
Customs
consolidation
package in
C.A.

of IPC/Textile
cluster

Grupo Lovable,

Private Synthethics Tax Services

No port in have grown, excemption compete vs
source
ES

the small scale with time textile

0.15 KwH

Average
Atlantic
operations
limits
operations for
talent

Private Korean Tax Talent pool in AMTEX,

Good port
operations excemption certain areas, subsidiary
Gua

source in the
0.16 KwH
dominate with time textile cluster from Grupo
Average
Atlantic
this market
limits
consolidation
Karims

 Why Honduras?

1.  Best geographical position:

  Closeness to the U.S.

  Lowest logistical costs in the
region

  Closest position to the Central
American textile cluster

2. Cafta and FTA and Mexico,
among other countries

  Access to the Mexican market

3. Strategic partnership with key
players in the business

4. Best infrastructure in the region

5. Energy supply reliability at a
competitive cost

Why Green Valley
Industrial Park?

 Who we are

• Green Valley Industrial Park is a unique case: a consortium of two

American companies and two Honduran companies co invest in an
industrial development. We believe in free economy, in free trade and in
productivity and thus improving our competitiveness. We believe that
productivity can be achieved through shared services and economies of scale

• Green Valley Industrial Park is the largest industrial development in the

Americas (510 acres), with one of the most sophisticated and complete
logistics, telecommunication and energy infrastructure in an industrial
development.

• Green Valley Industrial Park is a completely innovative way to do

business: we have a deep service culture, in which we develop the
infrastructure, provide a turn key solution to our tenants, helping them
focus in their core business - Manufacturing.

 Our Values

• We believe in social responsibility - we can not have successful

operations in failed communities, in failed cities or in a failed
country

• We believe in environmental sustainability; from its’
conception, GVIP was designed by a laurated landscaping
Canadian firm: O2 Design.

• We believe in competitiveness and energy sustainability

 Our Partners

Green Valley Industrial Park, the result of cross

collaboration…

 Strategic Partners

Respond to short-term changes in demand or supply

quickly, handle external disruptions smoothly

Partnership

Agility

Strategic

Adjust supply chains design to meet structural shifts in

Adaptability
markets; modify supply chain network to strategies,

products and technologies

Alignment

Create inventives for better performance

 Cluster Consolidation: strategic
geographic location

Strategically located, Green Valley

Industrial Park is the new and most
modern industrial hub in the region

We have been able to consolidate two

industrial clusters: the textile industry
and the automotive component and
wire harness industry

 Green Valley Industrial Park - Milestones

Energy plants start

supplying energy
needs

Signature of shareholder
agreement
CAFTA Ratified by Honduras
March 3, 2005

2004 2005 2006 2007 2008 2009

ISO 14000
Anvil Groundbreak in
certification
August 16, 2005

First plant (AKH) Undersecretary of

delivered on June Commerce Mr.
6, 2006 Padilla visitis GVIP

Moving forward to become the most technologically

advanced industrial park in the Americas
 Infrastructure Investment

Total infrastructure
investment at Green Valley
Industrial Park: Physical
infrastructure contemplates
75 M dollars (water
treatment, cogeneration
plant, buildings,
telecommunication) and
approximately 125 M in
equipment

 Key Elements of Responsible Energy


Management

Reliability

Diversification of energy supply

2 Generation Plants in site
Parkdale

Bunker Plant = 14 MW´s

Envasa
Enee

Coal Plant = 7.4 MW´s

Total = 21.4 MW´s

Current demand at Park = 10 MW´s
GVIP

Park Owned distribution network – Ring
Configuration

Energy must become another competitive Customer Customer Customer
A
B
C

advantage for our Customers.

We support this strategy in the most efficient,

cost effective and environmentally responsible
manner possible

 Key Elements of Responsible Energy
Management – Energy Efficiency

Energy Efficiency

• Low Cost energy – Diversification of energy

supply

•  Bunker Plant = US$ 0.135 (it varies with
fuel prices)

•  Coal Plant = US$ 0.125 (it varies with
fuel prices)

•  Renewable (solar) – in project

•  Renewable (hidroelectric) – in process

•  Infraestructure ready to bring hidro-
energy

•  Energy Saving technologies in equipment and

installations

 Water treatment

Water treatment: current

capacity is 12,000 M3 per day.
Plant is prepared to grow in
modules. Basic process consists
in aerobical and aeration
system for solid remotion and
also physicochemical
treatment. Ozonic treatment
for color remotion is the final
stage of the process.

 What is Green Valley
Industrial Park and its’
partners value
proposition?

 Strategic Partnerships – Grupo Karims
Capabilities

  Extensive and inside market knowledge are consequences of a

local presence

  Only through a combination of strengths we can assure business
sustainability

  Market needs technical expertise, core capabilities on logistics,
credit facilities and local manufacturing

  Strategic alliances are the new realities for world competitors in
local markets, if strategic goals are alligned!

 A consolidated textile cluster…our goal

  Green Valley Industrial Park

and its partners play a key role in
the development and
consolidation of the Central
American and Honduran textile
and apparel cluster, through
innovative business models,
partnering with our customers
and providing value added
services and infrastructure.

  We strive to continue actively
participating as a key success
factor for our customers
operations

 The best supply chain partners identify
structural shifts before they occur, by
capturing the latest data, filtering out noise
and tracking key patterns.

Thank you