As the coronavirus pandemic continues to spread throughout the world, production in major wood-producing countries has stalled, the patterns of international wood production trade have been severely impacted and the global wood supply chain is facing a huge risk of breaking.
Faced with this very complex international situation and the reality of China’s high dependence on wood imports, the Chinese companies which have overseas business have intensified the development of overseas forest resources and wood procurement, in order to ensure the supply of timber in China.
China Forestry Group Corporation has further intensified its efforts to develop overseas forest resources. The acquisition project of New Zealand RMS has now been successfully completed. It has obtained the right to lease 5,164.6 hectares of forest land around Wellington, New Zealand, and the right to use the 3,500 square meter yard in Wellington Port. At the same time, it continues to follow up other overseas forest land acquisition projects, and is expected to make substantial progress during the year.
Since New Zealand’s response level to coronavirus was upgraded to Level 4 alert status on March 25, log harvesting activities have completely stopped. In order to make up for the supply gap of New Zealand radiata pine and European spruce, the company has increased the procurement of timber from Australia, South America and North America. At present, it has purchased nearly 600,000 cubic meters of timber to ensure domestic timber supply. It is expected that on April 23, New Zealand’s alert status will be lifted, and forestland operations are expected to resume. The company will actively organize the resumption of production in the first time after obtaining the resumption of work permit.
China Forestry Group Corporation is a forestry company in China, established directly under State Forestry Administration of the People’s Republic of China in February 1984 to plant and manage forests in China and internationally, as well as to produce, process, import and export forest products China Forestry Group Corporation has its headquarter in Beijing and runs business operations in the United States, Canada, New Zealand, Australia, Myanmar, India, Singapore, Russia, France, Uruguay, Brazil , South Africa and Mozambique.
As a wholly owned subsidiary of China Forestry Group Corporation, China Forestry Group New Zealand Company Ltd is a New Zealand registered and based forest products and management company. The company acquires and manages forest resources , harvesting, wood products transportation, sales and export. Its wood products supply both the New Zealand and international markets. China Forestry Group Corporation is keen in further direct investment in forests in New Zealand.