Aug 20, 2010. China's Shengyang Group has completed the purchase of French timber company GEB in Gabon. After six months of talks, Shengyang inked its Euro 68 million purchase of GEB, Gabon's No. 3 timber firm.
China's Shengyang Group completed purchase of French timber company GEB in Gabon
Aug 20, 2010. /Lesprom Network/. China's Shengyang Group has completed the purchase of French timber company GEB in Gabon, completing a Chinese takeover of an industry once controlled by firms from France, Reuters reported.
After six months of talks, Shengyang inked its Euro 68 million purchase of GEB, Gabon's No. 3 timber firm.
Some environmental activists in Gabon are concerned about the impact from Chinese dominance of the timber industry. The GEB deal comes a year after Chinese businessman Guohua Zhang bought Plysorol, Europe's No. 1 plywood manufacturer, which owns two other leading timber firms in Gabon, leaving Chinese firms as the main operators in the country.
According to the deal, Shengyang will now control 1.47 million hectares of Gabonese forest and inherit the firm's forestry equipment. Neither of the firms made any statement during the signing ceremony.
