Jan 12, 2010. Sino-Forest Corporation acquired one of its wholly-owned subsidiaries of Homix Limited, a company engaged in research & development and manufacturing of engineered-wood products in China, for an aggregate amount of $7.1 million. The acquisition includes the company's facilities in mainland China and its patents.

Sino-Forest acquires Homix Limited, an R&D and recomposed wood manufacturer in China

Jan 12, 2010. /Lesprom Network/. Sino-Forest Corporation acquired one of its wholly-owned subsidiaries of Homix Limited, a company engaged in research & development and manufacturing of engineered-wood products in China, for an aggregate amount of $7.1 million. The acquisition includes the company's facilities in mainland China and its patents. The transaction was funded with cash on hand, the company said in a press release received by Lesprom Network. Homix has an R&D laboratory and two engineered-wood production operations based in Guangzhou and Jiangsu provinces, covering eastern and southern China wood product markets. The company has developed a number of new technologies with patent rights, specifically suitable for domestic plantation logs including poplar and eucalyptus species. Homix specializes in curing, drying and dyeing methods for engineered wood and has the know-how to produce recomposed wood products and laminated veneer lumber. Recomposed wood technology is considered to be environment-friendly and versatile as it uses fibre from forest plantations, recycled wood and/or wood residue. This reduces the traditional use of large-diameter trees from natural forests. There is growing demand for recomposed wood technology as it reduces cost for raw material while increases the utilization and sustainable use of plantation fibre for the production of furniture and interior/exterior building materials. Mr. Allen Chan, Sino-Forest's Chairman & CEO, said, "As we continue to ramp up our replanting programme with improved eucalyptus species, it is important for Sino-Forest to continue investing in the research and development that maximizes all aspects of the forest product supply chain." Mr. Chan added, "By acquiring Homix, we intend to use six-year eucalyptus fibre instead of 30-year tree fibre from other species to produce quality lumber using recomposed technology. We believe that this will help preserve natural forests as well as improve the demand for and pricing of our planted eucalyptus trees." Homix is a private company registered in the British Virgin Islands.

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