Asia
Short-rotation tree farming of hybrid poplar and other species is well developed throughout China. And market demand for a wide range of timber products significantly exceeds existing supply. China has stated its goal to develop over 15,000,000 acres of poplar tree farms in 18 provinces. This provides a foundation for us to bring our core competencies to this industry and provide investors interested in timberland investing in China the greatest opportunity for realizing superior risk-adjusted returns.
We have been working in China since 2001, assessing markets, testing plant material and building relationships. In 2005, we established a wholly foreign-owned enterprise (WFOE) to execute a strategy around our integrated capabilities and structured business groups. As a part of this strategy, we have expanded our human resources to include competent managers, analysts, tree improvement geneticists and support staff. We have focused significant efforts on expanding the key relationships with government, industry, regional investment experts and academia.
Core business groups in Asia include:
Capital management
The capital management group in Asia develops tree farm investment opportunities and structures for China as well as other regions throughout Asia. These include possible direct investment into a regional GreenWood China Tree Farm Investment Fund as well as investment and resource management support for other timber investment groups. The most critical success factors for invested capital in China are selection of capable and trustworthy partners, a clear understanding of property and timber rights, the ability to properly decipher and analyze data and the resources to simplify channels to market. Led by our global business development team and supported by Chinese resources, this group is well-positioned to succeed in this emerging market.
Tree improvement & nurseries
We have established nurseries in six sites in five Chinese provinces — Henan, Hebei, Beijing, Anhui, Shandong and Liaoning — where we have deployed more than 1,000 varieties of poplar hybrids and pure species for testing and future commercialization. In China, as elsewhere, we will deploy our elite plant material only on properties where we have a vested interest in the full development and sustainable operation of the asset. This approach will build our brand, protect our intellectual property and enhance asset valuation and operating profitability for our investors.
Resource management
We work with industry, governments, investors and other interested parties to assess opportunities in high-yield, fast-growing tree farms throughout China and other regions in Asia. This group is active in developing relationships around land use rights, timber certification, regional silvicultural approaches, harvesting and transportation strategy, access to key markets and opportunities for joint ventures with private and governmentally owned tree farms and land access. We are continually developing and analyzing investment opportunities into existing tree farms as well as new tree farm developments. Due to the scale of this market opportunity, we emphasize due diligence and relationship management to provide the greatest opportunity for realizing superior risk-adjusted returns.
Product sales & trading
In Asia, as in North America, we seek strategic partnerships with value-added processing companies and downstream customers that enhance the investment proposition for our managed tree farms. This group provides value by linking the wood from these types of tree farms to the highest-value markets over time.
Also of Interest
See our Tree Farm Capabilities for more information.
