Sino-Forest Corporation recently announced its wholly-owned subsidiary, Sino-Panel (China) Investments Limited has entered into master agreements with Bolin Forestry Co., Ltd., and Yuango Forestry Co., Ltd. to purchase plantation forests in two provinces of China for planting trees of pine, cedar, fir, birch and spruce. The trees will be used for the corporation's wood manufacturing operations, and the fibre acquisition is anticipated to take place over a 10-year period of time. The land lease can be extended to 50 years.
Terms and conditions will be part of a definitive agreement to be signed later. The average yield for both plantations is around 90 cubic metres per acre. The total number of acres acquired through both plantations is 266,000 acres.
In March 2011, it was announced Sino-Forest accepted a $50 million-dollar loan offered by the China Development Bank Corporation Guangdong Branch for the long-term planting plan. At the same time, Sino-Forest reported its flooring revenue from its wood manufacturing operations increased 51 percent to $22.8 million in the fourth quarter of 2010, and increased 48 percent to $68.3 million for the full year of 2010.
Posted by Molly Keith
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