Sino-Forest Corporation
Sino-Forest acquires engineered wood production and research business in China
Sino-Forest Corporation (“Sino-Forest”)(TSX: TRE), the forest plantation operator focused on China, announced that it would acquire Homx Limited, a research & development (R&D) and engineered wood manufacturer for US$7.1 million. Sino-Forest is financing the acquisition from available cash.
Homix owns two engineered wood production facilities in Guangzhou and Jiangsu Provinces which supply the southern and eastern wood markets. The company has also developed a number of new technologies, which Sino-Forest says have patent rights, and are suitable for domestic plantation logs, including eucalyptus and poplar trees.
“HOMIX specializes in curing, drying and dyeing methods for engineered wood and has the know-how to produce recomposed wood products and laminated veneer lumber,” Sino-Forest reported.”…there is growing demand for recomposed wood technology as it reduces cost for raw material while increases the utilization and sustainable use of plantation fibre for the production of furniture and interior/exterior building materials.”
Sino-Forest also noted that China’s government is keen modernize the wood industry to improve quality and maximise wood fibre usage.
"As we continue to ramp up our replanting programme with improved eucalyptus species, it is important for Sino-Forest to continue investing in the research and development that maximizes all aspects of the forest product supply chain,” Allen Chan, Sino-Forest's Chairman & CEO, said, “Modernization and improved productivity of the wood processing industry in China is also necessary given the country's chronic wood fibre deficit. Increased use of technology improves operation efficiency, and maximizes and broadens the use of domestic plantation wood, which reduces the need for logging domestic natural forests and for importing logs from strained tropical forests.”
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