HONG KONG, Oct. 12 /PRNewswire-Asia/ -- China Forestry Holdings Co., Ltd. (HKEx Stock Code: 930), yesterday announced the signing of a non-legally binding letter of intent with the Youyang County Government in Chongqing to develop county's forestry business.
According to the letter of intent, the investment by China Forestry will be carried out in two phases over three years, and that US$70 million be invested in 1,000,000 mu (approximately 66,000 hectares) of commodity forest and 500,000 mu (approximately 33,000 hectares) of bare forest land for building an industrial based forest. The annual logging target is 200,000 cubic meters. Separately, the Company intends to invest US$30 million, over three years, in building wooden structure houses and new wood-plastic composite production lines. In addition to logs, the Company is seeking to diversify its range of products to processed logs. The project is currently being studied.
China Forestry's forest reserves are currently mainly located in Sichuan and Yunnan provinces. When the Youyang forestry development is finalized, the Company's forest reserves will be strategically expanded and optimized. The Company shall make disclosure in accordance with the relevant requirements of the Listing Rules when the project materializes.
Mr. Li Kwok Cheong, Founder and Chairman of China Forestry, said, "Following the invitation of investment from the Zhong County in Chongqing in May and the Government of Qiandongnan Perfecture in Guizhou province in September, I am delighted that the Youyang County Government in Chongqing has selected China Forestry as its partner for this forest land development project. The strong support that the Group has garnered from local governments for its development of forestry projects signifies the State's recognition of our business development, which is beneficial for the long-term development of our business as well as profitability."
About China Forestry
China Forestry is one of the leading privately-held, naturally regenerated and plantation forest operators in China in terms of coverage area of owned forest rights. The Company owns forestry rights in respect of approximately 171,780 hectares of forests as at 30 June 2010 China Forestry's business operations are currently focused on upstream timber activities and cover the full timber supply chain from planting of trees, the management and operation of forests and harvesting of forest resources to the sales of logs to third parties.
The Company has listed its shares on the Main Board of Hong Kong Stock Exchange Limited since 3 December 2009.
To learn more about the Company, please visit the Company's website at: http://www.chinaforestryholding.com
For further enquiries, please contact Hill and Knowlton Asia Ltd.: Gary Li Tel: +852-2894-6239 Jacqueline Lee Tel: +852-2894-6221
SOURCE China Forestry Holdings Co., Ltd.