China Forestry buys RMB 464-mln forest asset

Mar. 1, 2010 (China Knowledge) - China Forestry Holdings Co Ltd has announced that it will spend RMB 464 million to purchase rights in a forest in Ninglang County, Yunnan Province.

For a period of 30 years starting on Feb. 26, 2010, the Hong Kong-listed firm will have the right to plant trees in a large forest covering an area of 5.33 hectares.

On the site, the company will plant Yunnan pines, balsam firs, dragon spruces and Sikang pines for the production of wood boards and paper pulp.

China Forestry Holdings currently operates 171,780 hectares of forest in total, 12,447 hectares in Sichuan Province and 159,333 hectares in Yunnan Province.

As of Jun. 30, 2009, the enterprise had forest reserves of around 35.5 million cubic meters, according to the firm's website.