Cathay Forest Products Joint Venture Begins Roundwood Deliveries to China
Toronto, Ontario, Canada, 24 November 2008 -- Cathay Forest Products' majority-owned Russian joint venture DalEuroLes L.L.C. has recently delivered its first shipment of harvested roundwood into China. This shipment and Cathay Forest’s current inventory will be sold on the Chinese market. DalEuroLes holds concession rights on approximately 1 million hectares of forest in Khabarovsk, Russia, with a current total annual allowable cut of 300,000 cubic meters.
By virtue of it membership in Russia’s Priority Investment Program, DalEuroLes has complete Russian export tariffs exemptions on the export of processed wood products. As such Cathay Forest is committed to developing value-added wood processing operations in Russia during 2009. To do so, Cathay Forest plans to acquire preowned North American or Japanese sawmill equipment.
Cathay Forest also welcomed the recent announcement by Russian Prime Minister Vladimir Putin that increased export tariffs on unprocessed roundwood originally scheduled for 01 January 2009, will be delayed for 9-12 months.
Cathay Forest also confirmed that construction of the DalEuroLes lower landing shipping area is expected to be completed in early December 2008.
Cathay Forest is a forest products company that manages more than 1 million hectares of standing timber properties and fast-growth, high-yield poplar plantations in China and Russia. Cathay Forest is building a world-class forest products company through a customer base that includes the domestic Chinese pulp and paper industry and other wood products customers in the Japanese market.