Chinese Investment

New Chinese forest company pledges to invest US$100M
By Johann Earle
Friday, February 9th 2007

Bai Shan Lin International Forest Development Inc, a new company with funding from China, plans to invest approximately US$100M dollars over the next three years for value added processing as well as timber harvesting and hopes to have an annual production capacity of 300,00 to 500,000 cubic metres, the company said at a press conference held yesterday.

The company is 49 per cent owned by BUCC, a construction company of China which has businesses in various countries of the world. Funding for Bai Shan Lin comes directly from BUCC, the company said.

Speaking at the press conference, the Company's Administrative Manager Karen Canterbury said that to date, more than US$10M worth of various kinds of logging equipment has been brought in from China and other countries. She said that the company has already received a sum of US$5.1M to facilitate the project.

"We plan to establish two large-scale timber processing factories in Linden and Georgetown, with a total log capacity of 300,000 cubic metres per year," Canterbury said. "Towards this end, the company has purchased a sawmill in Linden, which has been previously owned by Jaling Company and discussions have commenced with the Government officials about the expansion of the factory site," she said.

According to Canterbury, it is estimated that the two factories will provide employment opportunities for at least 800 to 1,000 Guyanese. She said too that the Linden Economic Advancement Programme (LEAP) has given its full support to the project and that with their assistance the company was able to recruit persons for the Linden sawmill, where work has already started.

The company, whose main markets will be China for now, said that it would strictly abide by all the laws and regulations of Guyana for the industry. The company said too that once additional markets are garnered, forest certification would have to be sought.

Canterbury emphasized that sustainable use of the forest resources is the fundamental principle of the company. "We can all agree that Guyana has abundant forest resources, therefore why should it not be utilised to contribute to the economic development of the country?" she stressed.

She posited that development in this sector has been constrained by the lack of funds to procure modern equipment, advanced technology and personnel with advanced wood processing skills.

"Bai Shan Lin Company will introduce the advanced wood processing technology and the advanced processing equipment. We will also train a group of local personnel who will be able to master the technology thereby increasing production of value added products," Canterbury said. She added that the operations will place emphasis on the processing of finished products in accordance with the Government's policy.

The Administrative Manager said too that in order for the company to maximise the use of the forest resources, it will embark on a project to utilise the bark, branches, defective wood and factory waste to make high density boards. She estimates that the company would be able to produce 200,000 cubic metres of high density boards within the next three years.

She said that the company will energetically pursue its development plan so as to contribute significantly to Guyana's economy, while at the same time providing employment for Guyanese. She said that the focus of Bai Shan Lin is to operate a company that provides mutual benefits to both the company and the Government and people of Guyana. "We intend to operate our business legally based on the law of Guyana and to pay relevant taxes. Bai Shan Lin is determined to be a good corporate citizen and a household name in Guyana," she said. She added that the company will seek to work with the Ministry of Labour to ensure that its workers get a fair deal. The company, she also said, will not discourage trade union representation for its workers.

Jaling

President of Bai Shan Lin Chu Wenze said yesterday that his company and Jaling are two completely different entities and that there is no relationship between them. He did say however that when Jaling was considering setting up a veneering plant, he fronted money to Jaling for the purchase of equipment. He said that things went wrong and the business relationship went sour and at the moment the company is seeking to repossess the Jaling machinery sitting at Port Kaituma.

Some weeks ago, a note on the Bai Shan Lin website said that the company would have been processing lumber from Jaling's concession, but Chu said that his arrangement is no longer being pursued in light of the soured relations between the two companies.

Chu said that the company aims to have a workforce of 80 per cent Guyanese and 20 per cent Chinese. He said that the Chinese will comprise technicians and managers. He said that another US$7M in equipment is to arrive in the country before the end of June this year.

He said that the company plans to have the largest wood-processing factory in Guyana with the planned expansion of the factory at Linden. He said that with a view to achieving this, the company is in discussion with the Government to acquire land for the project's expansion. Talks are also in train between the Government and the company with a view to having land for the Georgetown-based sawmill. He said that safety in the company's operations - both primary and secondary - will be a high priority.

Chu said that the company needs a large amount of raw materials and has commenced a process of procuring this from smaller concessions. The company is also in the process of acquiring its own forest concession so that it would be assured of a reliable supply of logs for its downstream activities.

The company President said that Bai Shan Lin will deliver everything it promises and reinvest its profits for the further development of the industry.

Stabroek News