Guangdong Jiayao Wood Products Development Co, Ltd, a subsidiary of Chinese forest plantation operator Sino-Forest Corporation, has signed an equipment assignment contract with an arm’s length third-party purchaser to sell the particleboard manufacturing equipment at its plant in Gaoyao, Guangdong Province for about US$30m.
The contract provides that the purchase price will be paid to Sino-Forest in instalments over a six-month period. Sino-Forest will retain ownership of the manufacturing building and property, with the purchaser leasing the Gaoyao premises and operating the equipment.
Sino-Forest chairman and ceo Allen Chan said the sale of the equipment would allow the company “to better focus on our manufacturing strategy of developing a portfolio of smaller-scale processing facilities that is closely integrated with our plantation operations. Maple brand of wood products, which utilise fibre from our own plantation resources.”
