Asian Bamboo signs framework agreement for the lease of 10,000 ha
Hamburg, 15 March 2010 – Asian Bamboo AG (“Asian Bamboo”, “the Company”, ISIN: DE000A0M6M79, ticker symbol: “5AB”, ADR ticker symbol: “ASIBF”), a world-leading producer of bamboo trees and organic bamboo shoots, is pleased to announce that its wholly-owned subsidiary, Fujian Xinrixian Group Co., Ltd. (“Xinrixian”), has entered into an Investment Co-operation Framework Agreement (“the Agreement”) with Longyan Municipal Government (“the Government”).
As part of the Agreement, the Government will assist Xinrixian to lease more than 10,000 hectares (ha) of additional Moso bamboo plantations in Longyan City. Furthermore, the Government will provide favourable policies and business conditions for Xinrixian to invest in processing factories both for bamboo trees and bamboo shoots.
Longyan City, which is in southwestern Fujian Province, is strategically well located as it borders the provinces of Jiangxi and Guangdong. Longyan City has the highest forest cover ratio in Fujian Province (78%) and its Moso bamboo forests cover an area of approximately 170,000 ha, of which Asian Bamboo currently leases 5,000 ha.
Mr. Lin Zuojun, founder and CEO of Asian Bamboo, commented: "We see tremendous potential to develop our business in the Longyan area and this agreement is an important step towards achieving our longer term goal of increasing our total plantation size to at least 70,000 ha.”
Asian Bamboo wins “Hi-tech Enterprise” status
Asian Bamboo is pleased to announce that Xinrixian has been awarded "Hi-tech Enterprise" status by the Science and Technology Bureau of the Fujian Provincial People's Government in recognition of the Group’s research capabilities in the Moso bamboo industry.
