1. Mongolian Cashmere Industry Overview

2. Mongolian Cashmere Industry Overview

3. Mongolian Government Policy on Cashmere

4. Major challenges and investment opportunities
REQUIRED FUNDING
1. Raw material funding for local manufacturers
About 85% or 6000tn of raw cashmere exported to other countries unprocessed.
≈ U$300 million
2. Capacity increase
≈ U$145 million
3. Factory building
7000 m2 of more factory space required for production and machinery installation
≈ U$35 million
4. Workforce and foreign market
Domestic market - U$ 212 million,
U$1.6 billion foreign market required after capacity increase
Current industry workforce
7000 skilled and trained workforce required after increasing processing capacity

5. Government support programs for the Mongolian cashmere industry
Year
Government programs
Amount
Implementation %
Purpose
2011
Gov.resolution №30
₮ 100 billion
100%
working capital financing
2013
Gov.resolution №126
U$ 68 million
55%
technical and technological modernization
2014
Gov.resolution №87
₮ 250 billion 9%
cashmere production and export
Gov.resolution №165
₮ 40 billion =
cashmere production
Cashmere project financing model
Commercial Bank
Mongolian cashmere companies
Mongolian Government
Secured loan
Government
funding
- collateral (real estate, land)
- credit history, image
- additional cost (bank margin)

6. Cashmere industry investment opportunities№
Amount
Required financing 1
U$145 million
Cashmere processing machinery and equipment 2
U$ 300 million
Working capital financing 3
U$ 35 million
Factory building and infrastructure
Mongolian government jointly with Mongolian cashmere industry invite your cooperation through FDI, mezzanine financing, Concession agreements, JV, purchase order financing etc.,