Canadian-owned Sino-Forest Corporation has a merchantable volume of 16.5 million m3 of standing timber on 227,000ha, according to an independent valuation by Finnish consultants.
Jaakko Pöyry Consulting says the company, which operates plantations in southern China, has assets representing 10 years of harvesting, assuming 20,000-25,000ha of trees are sold every year.
The volume excludes Sino-Forest’s acquisition, sale and re-planting of trees in Heyuan City. About 200,000ha of mature pine trees are being acquired over a two-year period, expected to be completed in the first quarter of 2006.
The company plans to sell about 60,000ha in 2005 and replant with fast-growing eucalyptus trees.
Sino-Forest chairman and chief executive Allen Chan said the Heyuan undertaking would see the harvesting of about eight million m3 of standing timber over three years.
“Our wood supply is already substantial and we intend to undertake other acquisitions in the future,” he said.
