DKDR Haiti S.A was established in February 2008 with 600 employees manufacturing men's suit, overcoats, Tuxedo and dress pants. The company have been thriving the business in the Dominican Republic for over 20 years under the name of DKDR Dominican Republic. Apparel business in Dominican Republic lost its competitiveness over the years and they made the decision to move production (cut and sewing services) to Haiti because USA waved all duty charges on product that are made in Haiti, Program HOPE (Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008, by the US government). Under HOPE Program, DKDR have duty exception which varies between 10% and 30% - compared to other producers that does not enjoy HOPE access- depending upon the type of fabric.
The competitive pricing due to HOPE program and their buyer's satisfaction in the quality have allowed DKDR to grow faster than they anticipated. In August of 2009 they acquired 2 additional buildings with half installation already and have employed 1,200 Haitians in total. The company is planning to finish the expansion by installing machineries in 2 buildings they acquired last August and will have up to 1,650 employees.
The loan is to expand their production capacity for pants. Currently they have 2 pants production lines which are making 30,000 units per month and the company wants to add one more pants line, this will increase monthly capacity by 15,000 and sales will also increase by US$105,000 per month.
Basic Information Project Name: DKDR Project Number: HA2750A-01 Country: Haiti Sector: Textiles, Apparel, and Leather Approval Date: 02/25/2011 Date of First Disbursement: 03/21/2011 Financial Information Type of Financing: Loan Total Project Cost: $ 360,000 IIC Financing Amount: $ 360,000 Syndicated / Co-financing Amount: $ 90,000