| Sino-Forest Chief Executive Officer Chen Deyuan interview |
| Form：Finwood Time：2008-10-28 17:29:25 |
Toronto (TSX) _ in a variety of renewable resources, such as wood all-powerful few and far between. Trees absorb carbon dioxide from the air, breathing rate, we take the necessary oxygen. Wood can be used to make paper, furniture, decorative arts infrastructure and so on, at the same time, or natural, renewable and recyclable materials, a high utilization rate. Perhaps it is because of the enormous benefits of wood, which makes the market demand for timber prices, the Asian timber growing gap. Currently in China, nearly half of the demand for wood is still dependent on imports.
Sino-Forest (TSX: TRE) is actively taking measures to fill the supply gap. As a base of the Canada China planted trees operators, Sino-Forest provides a wide range of channels to the sustainability of wood supply as its target. At present, Sino-Forest through the acquisition of forest and tree planting, etc., the business has extended to China’s Guangdong, Guangxi, Jiangxi, Fujian, Heilongjiang, Inner Mongolia, Shanghai, Jiangsu, Hunan and Yunnan provinces in ten. Sino-Forest
forest owners to engage in the acquisition and planting of trees, plants and the sale of standing timber, part of the business, which accounts for 54.7 percent of revenue. In addition, Sino-Forest 14% of the revenue from purchases and sales of logs and wood chips, and 27% of income comes from import logs and sawn wood products, and so on, as Russia and South America, rich in large-diameter logs, products From local companies import. Sino-Forest’s tree planting short-cycle, for more than a diameter of 12-20 centimeters. In China, eucalyptus need to become useful 5-6 years, according to the different uses of wood, may be reduced to 3-4 years. Poplar and alder become useful average of 6-8 years, the longest growth cycle of trees should be 12 years. Sino-Forest chief executive, said Chen Deyuan, the longer the growth cycle is not good, because a shorter "sustainable cycle" help to improve the ecosystem. China’s demand for nearly half of the timber to rely on imports, Chen Deyuan that do not meet the domestic demand must be "imported or through other means." He said that "the import of timber in China has become a reality, through Sino-Forest hope to both domestic and foreign supply of wood to ensure that the domestic market to meet demand."
But timber production is not simply the felling of trees; over-logging has become a Chinese face A major problem, resulting in reduction of forest cover, precipitation will not land for water filtration. In the destruction of forest areas, surface water was a serious loss of form easily flood. As a result, planting of trees is not only a continued supply of wood ideal, but also help to reduce the felling of trees on the environment.
In this way is not the first Sino-Forest. "Tree planting in some countries has been a good development," Chen Deyuan said, "but we have no one in China and try to be successful." Science and Environmental Protection is a system: the need for studies of soil conditions, selection Will be the most suitable tree species - species identified, but also for the species breeding and tissue culture. "The cultivation of seedlings as if construction planning," said Chen Deyuan description, "Where is growing, how to grow, planting a few row, which measures the maximum utilization of land, and so on, must be well considered." Through research to ensure that the environment will not be adversely Impact, which is China’s laws on forestry development, Sino-Forest is also a business purpose. Trees with soil, topography, rainfall, as well as the ecological environment in harmony, otherwise the proceeds will be greatly reduced. China’s forestry is always the "intensive" and "small", with the vast North American forestry plants. Chen Deyuan explained that, no matter from an environmental point of view or from a commercial point of view, it is very necessary. China’s unique topography, a large number of scattered mountain and rivers, and small tree farms also means that "a healthy ecosystem, and allow the trees, ponds, farm groups and different species live in harmony with the environment, the maintenance of species diversity." Sino-Forest
the remaining 3.7 percent of the proceeds from the production of OSB, particle board, wood flooring, as well as green and nursery services. OSB board structure can be used for housing, construction materials, container floor, as well as export packing. Although the recycling of materials can be manufactured particleboard, but Sino-Forest is a selective use of new materials. In response, Chen Deyuan explanation is that "environmental protection is to reduce the wear and tear." Sino-Forest and all the particleboard used tree branches and more than expected from manufacturers. Chen Deyuan
said that Sino-Forest business prospects in the most "beautiful" part of the green and nursery services. In China, some cities have been ranked the world’s top 10 most polluted cities, that Sino-Forest is not only the development of business opportunities, but also beautify the city. As a result, Sino-Forest actively involved in government, parks, green belts, as well as real estate developers bidding, in addition to planting for harvesting timber but also for planting trees and gardening purposes. At the same time, said Chen Deyuan This is a Sino-Forest will help set up a good reputation in the industry in the success of the model, "more than 2,000 years, Suzhou has been China’s garden city and famous. If we succeed, we will be able to any other The success of the place. "Chen Deyuan said," We want to be the best urban landscape gardening company. "
Of Sino-Forest, the more pressing task at present is the scope of business to the rich forestry resources, said the south-west of China转移. At present, Sino-Forest’s business concentrated in the southeast. The original site of the Chinese coast is rich in forest resources, said Chen Deyuan, this place has gradually developed into industrial areas no longer suitable for planting trees. "We chose to transfer the south-west," said Chen Deyuan, "where the richest forest resources, China is a real wood base."
To expand overseas export markets prepare for Sino-Forest is another long-term work. "No substantive progress," said Chen Deyuan, Sino-Forest has been to develop a preliminary plan to other China-based foreign companies exporting wooden floor. Sino-Forest is contact with buyers in the past, to their branches abroad, which offer similar products. Chen Deyuan
said that although Sino-Forest engaged in the business has many competitors, but competitors in the operation and scope of the acquisition, development and the diversion of the overall strength is more favorably. Sino-Forest of the total market value of 2,300,000,000 U.S. dollars, the supremacy of trading days, stock prices in January has been the rapid rise of 7.85 U.S. dollars to 17.07 U.S. dollars. Chen Deyuan Sino-Forest, said the success of the evening than expected, but it also shows that investors understand the business model will take some time. "Our business in China, but the industry is also very special." He added that investors in Asia and the rubber plantation outside the industry do not know much about. He said, "Now they get to know our business philosophy and programs, but also recognize that we have the scale and long-term development platform."
But at the same time Chende Yuan also said that the outside world still exists in China for the misunderstanding, "often to China Those who do not know the existence of prejudice, that Sino-Latin American relations is crucial here. In fact, it is no longer the case, only there can be no long-term development of Sino-Latin American relations. "On the contrary, Chen Deyuan focused on a good working relationship, he stressed that Sino-Latin American relations and this has , This working relationship for all industries, all areas are equally important.
Planting trees can greatly reduce the development of natural forest for timber. In New Zealand, 19% of the forest cover will be able to provide 99% of industrial roundwood. Chen Deyuan said that the Chinese government has issued documents will eventually of urban greening rate to 50%, Sino-Forest has been to enter this market.
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