Maple Leaf Reforestation Inc
Maple Leaf currently has over 6,000,000 various types of seedlings under cultivation inside a 110,000 square foot greenhouse and a nursery growing facility.
Maple Leaf to build organic fertilizer plant in China
Maple Leaf Reforestation Inc said it has signed a letter of intent regarding construction of an organic fertilizer plant for the China Eco Program Development & Advisory Corp (CEPDA), a China based environmental project development company.
Under the agreement, which includes a special ‘Build, Operate and Transfer’ term, CEPDA will ensure and facilitate all possible government tax incentives; land use amendments and agreements; all licensing applications, approvals and permits; feasibility studies, engineering reviews and supply contracts; forward purchase agreements and facility construction.
Maple Leaf will provide the capital to build the fertilizer plant in the Hunan province and will have sole ownership of it. Under the special BOT arrangement, CEPDA will be contracted to provide technical support, operations and professional management services for the plant during the first year of operations.
The company plans to begin construction in Febuary, 2009. The plant will initially have a production capacity of 30,000 metric tons, and Maple Leaf hopes to produce between 10,000 and 20,000 metric tons during each of the first two years of operation, primarily producing bio-organic fertilizers.
Maple Leaf's capital investment for the first two years of operation is projected at CDN$500,000, and with a current average selling price for bio-organic fertilizer of CDN$240 a ton, the total revenue generated during each of the first two years of operation could be as high as CDN$5.5 million. Upon successful completion of the initial two year phase, the modular plant will steadily be expanded, with plans of rapidly reaching a production capacity of 100,000 metric tons.
According to the company, China is currently the largest consumer of fertilizers in the world, with more than twice the annual consumption of the US and nearly ten times that of Canada. It is expected that China's fertilizer usage will continue to grow during the coming years, thus creating an exceptionally strong domestic market demand.
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