Aug 31, 2005. /Lesprom Network/. Japan's leading paper manufacturer Oji Paper Co. and trading house Marubeni Corp. said they will carry out an afforestation project in Huizhou, southern China, jointly with a Chinese partner. To launch the business, the companies established a local unit, Huizhou Nanyou Forest Development Co. It is capitalized at 100 million yuan ($12.4 million), of which 30% has been put up by Oji and 5% by Marubeni. The remainder is chiefly held by the Chinese partner, Guangdong Petro-Trade Development Corp. Under the plan, the companies will plant 33,000 hectares of trees by 2008 and expand the area to 60,000 hectares in the future. The two Japanese firms intend to meet growing demand for wood chips in China and other Asian markets and to increase their cost competitiveness. This is their second afforestation project in China after one in the Guangxi Zhuangzu region, which started in 2001.