Sino-Forest Corporation has announced plans to sell its Sino-Wood Partners Ltd business, with an initial public offering earmarked for later this year.

Sino-Wood operates commercial tree plantations in China and sells wood chips, logs and standing timber.

Proceeds are expected to go on research and development, increasing the yield on Sino-Wood’s plantations, acquiring additional plantations and as general working capital.

Hong Kong-based Sino-Forest is owned by Canadian, US, European and Hong Kong investors.