Timber investment group China Forestry Inc. announced today that the company has signed a letter of intent to acquire the landscape engineering and construction firm Shaan’Xi Province Gaoxin Agriculture and Animal Husbandry Development Holding Co., Ltd. The company, located in Xi’An City, Shaan’Xi Province, generated over RMB 81 million in revenue in 2008.
China Forestry feels that acquiring Goaxin will bring a weighty advantage in pursuing its mission to capitalize on the Chinese Government’s decision to promote sustainable forest management through land tenure. Goaxin provides landscape design, engineering, construction and maintenance services to a target market of universities, parks, municipal spaces, golf course, sports venues, gardens and highways; additionally, the company maintains a seedling nursery of over three thousand acres.
Mr. Yuan Tian, CEO of CHFY, commented, “Management has invested considerable energy and effort to identify an operating business that complements our timber investments. CHFY can provide Gaoxin with access to capital for further development of their seedling business and geographic expansion of their landscape engineering projects. Although the LOI is not legally binding, we see this as a win-win situation for two companies dedicated to the sustainable economic development of China’s environment.”
Mr. Tian continued, “Given the participation of international landscape architects on the Beijing Olympics and the recent international awards received by Chinese landscape projects, we feel this is a prized market with vast potential, and we greatly value Gaoxin’s experience in winning contracts in a thriving market complicated by the challenges of sustainable development.”