Nippon Paper Industries Co., Ltd and ITOCHU Corporation have agreed with United Point Investment (UPI - a subsidiary of Thailand investment group in Hong Kong mainly promoting international trade of machinery, food stuff and seaport equipment) to form a forest company to develop the plantation in China.

 

This is the first project of plantation in China by a Japanese firm, and the sixth plantation project by Nippon Paper Industries following the similar project in Chile, Australia and South Africa.

 

Profile of forest company;
Company name	Crown Million Yangjiang Forestry Ltd.
Location	Yangjiang City, China
Establishment	January 24, 1998
Initial investment	Approximately U.S.$2 million One third each by Nippon Paper, ITOCHU, and UPI
Forest land	Within 90 kilometer from Yangjiang port. Plantation of eucalyptus tree at the harvested area of planted pine trees
Schedule	Plantation starts in 1998 and harvest in 2003
Size of plantation	Initially 2000 ha and target 10,000 ha

 

The plantation of eucalyptus by UPI is in place at 6,700 ha about 100 kilometer North of Yangjiang port, and Nippon Paper and ITOCHU started already to import woodchip of eucalyptus from the said area.

 

Both companies are aiming to secure chip supply from these self-developed resource.