Phaunos Timber Fund Ltd has announced a joint venture with US forest management firm Greenwood Resources that will see it invest US$200m in China.
The agreement will see the two firms investing in new plantation developments and existing resources of fast-growing tree species across China.
These will take place over the next two years according to Phaunos, with the first investments due to occur during the first quarter of 2008.
“The growth of the Chinese economy and the increasing demand for wood-based products are compelling reasons to enter the market,” said Keith Oates, chairman of the Phaunos board of directors.
Phaunos recently announced the approval of a plan to offer C shares in order to raise an additional US1.6bn of capital for investments.
