China Forestry Shifts Focus to Acquiring Forest User Rights
Harbin, China, 15 October 2008 -- (GLOBE NEWSWIRE) -- China Forestry Inc. (OTC BB:CHFY.OB - News), a timber investment group in the People's Republic of China, today announced a revised business strategy to focus on acquiring forest user right certificates instead of its previously announced plans to build manufacturing facilities for wood and paper production. In conjunction with this new acquisition focus, the company has decided to implement a more conservative timber harvesting strategy to reflect its decision to delay building timber consuming manufacturing capacity.
Commenting on the company's revised focus on acquiring additional forest user right certificates, Yuan Tian, CEO of China Forestry Inc., stated, ``Our board of directors has unanimously agreed that the current economic conditions create a unique opportunity for our company to grow through acquisition. Long-term, we are confident that demand for timber in China will create manufacturing opportunities for our company," he said.
``But given the uncertainty in the global markets for construction and furniture, the Chinese Government's emphasis on promoting sustainable forest management through land tenure reforms, and China's urbanization trends that indicate an increasing migration of owners of forest user right certificates into the cities, we feel that now is the time to focus on timber aggregation through acquisition of forest user right certificates," he said.
``Our near-term strategy going forward will also include implementing a timber harvesting strategy to fund internal operations, namely our marketing program to acquire forest user right certificates and to utilize our U.S. listing as a vehicle to fund our acquisition strategy,'' said Tian.
China Forestry, Inc. (OTC BB:CHFY.OB - News) is a timber investment group formed in the People's Republic of China to conform to state laws that prohibit non-PRC ownership of forest lands. The company's strategy is to capitalize on the central government's decision to promote sustainable forest management through land tenure reforms that include the transferability of forest user right certificates to PRC entities. The company's current holdings include ownership of four user right certificates representing 1561 hectares of state forest assets in China's northeastern Heilongjiang Province, home to China's most valuable timber and one of the most distinctive temperate forests in the world due to its rare biodiversity. For more information, visit the company's Web site at: http://www.chinaforestryinc.com.