Sunday, January 17, 2010

Sino-Forest Corporation to acquire BVI-registered Homix Limited

Sino-Forest Corporation, a leading commercial forest plantation operator in China, announced that one of its wholly owned subsidiaries acquired Homix Limited (BVI), a company engaged in research, development and manufacturing of engineered-wood products in China, for an aggregate amount of US$7.1 million. The acquisition transaction included company's facilities in mainland China and its patents.

Homix Limited is a sole proprietorship company incorporated under the law of the British Virgin Islands. Also, the BVI company has an R&D laboratory and two engineered-wood manufacturing enterprises based in Guangzhou and Jiangsu Provinces, covering eastern and southern China wood product markets. Homix specializes in curing, drying and dyeing methods for engineered wood, and has the know-how to produce recomposed wood products. The company has developed a number of new technologies with patent rights.
By words of Sino-Forest's Chairman and CEO Mr. Allen Chan, by acquiring Homix, which has “significant technological capabilities in engineered-wood processing”, they intend to use six-year eucalyptus fibre instead of 30-year tree fibre from other species, to produce quality lumber using recomposed technology, and by this to preserve natural forests and improve the demand for and pricing of planted eucalyptus trees.