Cathay Forest Products Corp
Cathay Forest is a forest products company that manages approximately 1,000,000 hectares of standing timber properties and fast-growth, high-yield poplar plantations in China and Russia.
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Cathay Forest to acquire 40% stake in biodiesel producer Eco-Energy China
Toronto Venture listed forestry group, Cathay Forest Products (TSXV: CFZ) announced that it had entered into an agreement to acquire a 40% stake in biodiesel producer Eco-Energy China Group.
Eco-Energy China is based in south-west China. Its assets include a 40,000 hectare plantation of Jatropha Curcus and a biodiesel refinery designed and constructed by a subsidiary of China Petroleum & Chemical Corporation (NYSE: SNP & HK0386). Eco-Energy is scheduled to begin production of biodiesel in the third quarter of 2009.
Cathay is paying C$2.9 million for the equity stake.
Jatropha is a perennial fruit bearing shrub whose seeds contain non-edible oil which can be processed into biodiesel.
"This investment in Eco-Energy allows Cathay Forest to advance into the world of biofuel production utilizing forestry assets and byproducts. In China, diesel is a product that is high in demand and short on supply." said Anthony Ng, Cathay Forest's President and CEO. "While Cathay Forest's focus is still on developing our Russian and China operations, we will not stop exploring new and promising opportunities to remain on the frontier of the forestry industry and create value for our shareholders. Following this investment in Eco-Energy, Cathay Forest will still have adequate resources to advance its business activities to positive cash flow."
