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Green Valley IndustrialPark:
Honduras Business Case
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Executive AgendaWhy manufacture in Honduras?
Decision MatrixGreen Valley Industrial ParkWho we areGreen Valley Industrial Park InfrastructureEnergyWater treatmentGrupo Karims and GVIP core capabilitiesGrupo Karims ad GVIP as StrategicPartners Textile cluster
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The best supply chains arent just
fast and cost effectiveThey are also agile and adaptable,
and they ensure that all their
companies interests stay alligned.
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Average: 5/6 AverageAverage
Honduras Honduras/ES Honduras El Salvador HondurasHonduras
E
S
Gua
Energy
Cost
Honduras
Decision Matrix
LogisticsMarket
Attractiveness
/ Textile
ClusterTax
incentives
Best OptionHydro
source:
0.10 KwHPrivate
source
0.15 KwH
Private
source
0.16 KwH
No port in
theAtlantic
Largest
seaport,
US
Customs
Labor
Availability
TrainingStrategic
Partnerships
Good port
in the
Atlantic
Synthethics
are growing:
SCM
consolidation
Peoples
demonstrated
skils, presence
of IPC/Textile
cluster
Most
complete
incentives
package in
C.A.
ZIP Choloma,
Grupo Karims,
Green Valley,Grupo Lovable,
Synthethics
have grown,
small scale
operations
Tax
excemption
with time
limits
Services
compete vs
textile
operations for
talentKorean
operations
dominate
this market
Tax
excemption
with time
limits
Talent pool in
certain areas,
textile cluster
consolidation
AMTEX,
subsidiary
from Grupo
Karims
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1. Best geographical position: Closeness to the U.S. Lowest logistical costs in the
region Closest position to the Central
American textile cluster2. Cafta and FTA and Mexico,
among other countries Access to the Mexican market
3. Strategic partnership with key
players in the business4. Best infrastructure in the region5. Energy supply reliability at a
competitive cost
Why Honduras?
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Why Green ValleyIndustrial Park?
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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.
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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
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AdaptabilityAgility
AlignmentStrategic
Partnersh
ip
Respond to short-term changes in demand or supply quickly, handle external disruptions smoothly
Adjust supply chains design to meet structural shifts in markets; modify supply chain network to strategies,
products and technologies
Create inventives for better performance
Strategic Partners
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Cluster Consolidation: strategicgeographic location
We have been able to consolidate two
industrial clusters: the textile industry
and the automotive component and
wire harness industry
Strategically located, Green Valley
Industrial Park is the new and most
modern industrial hub in the region
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Signature of shareholderagreement
Anvil Groundbreak inAugust 16, 2005
Energy plants startsupplying energy
needs
First plant (AKH)delivered on June
6, 2006
ISO 14000
certification
Green Valley Industrial Park - Milestones
Moving forward to become the most technologically
advanced industrial park in the Americas
CAFTA Ratified by Honduras
March 3, 2005
2004 2005 2006 2007 2008 2009
Undersecretary ofCommerce Mr.
Padilla visitis GVIP
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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
Infrastructure Investment
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Key Elements of Responsible Energy ManagementReliability
Diversification of energy supply2 Generation Plants in siteBunker Plant = 14 MWsCoal Plant = 7.4 MWsTotal = 21.4 MWsCurrent demand at Park = 10 MWs
Park Owned distribution network Ring
ConfigurationEnergy must become another competitive
advantage for our Customers.We support this strategy in the most efficient,
cost effective and environmentally responsible
manner possible
GVIPEnvasa
ParkdaleEnee
CustomerA CustomerB CustomerC
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Energy EfficiencyLow Cost energy Diversification of energysupply
Bunker Plant = US$ 0.135 (it varies withfuel prices) Coal Plant = US$ 0.125 (it varies withfuel prices)Renewable (solar) in projectRenewable (hidroelectric) in process
Infraestructure ready to bring hidro-energy
Energy Saving technologies in equipment andinstallations
Key Elements of Responsible Energy
Management Energy Efficiency
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What is Green Valley
Industrial Park and itspartners value
proposition?
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Strategic Partnerships Grupo Karims
Capabilities
Extensive and inside market knowledge are consequences of alocal presence
Only through a combination of strengths we can assure businesssustainability Market needs technical expertise, core capabilities on logistics,credit facilities and local manufacturingStrategic alliances are the new realities for world competitors inlocal markets, if strategic goals are alligned!
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The best supply chain partners identify
structural shifts before they occur, by
capturing the latest data, filtering out noise
and tracking key patterns.
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Thank you
