Sino-Forest has reached an agreement with Zhanjiang Bo Hu Wood Company Ltd to acquire 150,000ha of plantation trees in Guangxi Province.

The deal, which includes pine and fir trees, is to be carried out through Sino-Forest’s wholly-owned subsidiary Sino-Panel (Asia) Inc and will not exceed a value of RMB380 (£25.30) per m³.

“We are very pleased to be able to lock-up a significant volume of standing timber and secure this long-term lease in Guangxi,” said Sino-Forest chairman and chief executive officer Allen Chan.

“Harvested land will be replanted with eucalyptus and we are confident that we could attain an average yield of 150m³ after a six-year cycle.”

Zhanjiang Bo Hu Wood Company is to act as the authorised agent for the original plantation rights holders.