SAN BRUNCO, CA and HONG KONG - China Forestry Industry Group, Inc., a San Brunco, CA company ( Pink Sheets: CNFI) formerly known as Phoenix Energy Resource Corp, announced today that it completed a reverse acquisition transaction with China Bingwu Forestry Group Limited, Hong Kong, to acquire 100% of Bingwu's stock.
China Forestry says it has terminated its prior business and now operates through Bingwu's subsidiaries in China producing and selling floor materials and related products to residential and commercial customers in China. Bingwu's product lines include laminate flooring and industrial fiber boards. Through these subsidiaries, Bingwu sells flooring products under the "Silvan Touch" brand throughout China.
"We operate an environmentally sound and low carbon footprint business. Instead of reducing natural forests for wood, our flooring products use primarily by-products such as branches and other wood scraps for raw material," said Yulu Bai, CEO of the combined company.The company says its mission is to become the largest vertically integrated floor material producer and the leading supplier of flooring, fiber boards and forestry resources in China that is also a recognized international player.
Bingwu also obtains material from approximately 2,250 hectares of its own rapid growth eucalyptus forest in China's Guizhou Province. The manufacturing facility in Qianxinan, Guizhou Province has annual production capacity of six million square meters of laminate flooring and 75,000 cubic meters of industrial fiber boards. Bingwu is constructing a new flooring factory that it expects will increase its overall capacity to 12 million square meters of laminate floor and 200,000 cubic meters of fiber boards. It expects to complete this new facility by mid-2012.
Bingwu markets its products in five branch offices and eight flagship stores in China, and through over 500 contracted flooring specialty retail stores that carry and sell its products. It also expects to enter into agreements with large home supply stores to market its products.
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