Sino-Forest Signs Long-term Master Agreement to Acquire Trees in Guizhou Province
Under the Guizhou Master Agreement, Sino-Forest will, through its PRC subsidiaries, acquire between 10.5 million and 16.5 million cubic metres (m(3)) of plantation wood fibre, within an area of 150,000 hectares of plantation trees that has an average yield of 70 to 110 m(3) per hectare. The fibre acquisition will take place over a three-year period with a price not to exceed RMB300 per m(3), to the extent permitted under the relevant PRC laws and regulations. The tree species include pine, Chinese fir and others. Guizhou Sen Li will ensure that the commercial plantation forests sold to Sino-Forest are non-state-owned and not from natural forests.
In addition to securing the maximum tree acquisition price, Sino-Forest has pre-emptive rights to lease the underlying plantation land at a price, as permitted under the relevant PRC laws and regulations, not to exceed RMB450 per hectare per annum for 30 years from the time of harvest. The land lease can also be extended to 50 years as permitted under PRC laws and regulations. The specific terms and conditions of purchasing or leasing are to be determined upon the execution of definitive agreements between the PRC subsidiaries of Sino-Forest and Guizhou Sen Li upon the authorisation of original plantation rights holders, and subject to the requisite governmental approval and in compliance with the relevant PRC laws and regulations.
Sino-Forest Chairman and CEO
Guizhou Province adjoins Sichuan Province and
About Sino-Forest Corporation
Sino-Forest Corporation (the "Company") is a leading commercial forest plantation operator in
Please note: This press release contains projections and forward-looking statements regarding future events. Such forward-looking statements are not guarantees of future performance of the Company and are subject to risks and uncertainties that could cause actual results and company plans and objectives to differ materially from those expressed in the forward-looking statements. Such risks and uncertainties include, but are not limited to: changes in China's and international economies and in currency exchange rates; changes in market supply and demand for the Company's products, including global production capacity and wood product imports into
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