Cathay Forest buys stake in Chinese biodiesel producer

Cathay Forest Products has announced that it will pay CAD$2.9 million (€1.8 million) to acquire 40% of Eco-Energy China Group, a private biodiesel producer based in China's southwestern province of Guizhou.

Cathay Forest, lists its shares in Canada and manages approximately one million hectares of standing timber and poplar plantations in China and Russia.

The company claims its forestry expertise and regional network will assist Eco-Energy in furthering its plantation expansion strategy to become a leading biodiesel producer in China.

Eco-Energy's assets include a 40,000 hectare plantation of jatropha curcus, a drought-resistant perennial plant that grows in poor soil, usually to a height of three to five metres.
Eco-Energy also owns a recently completed biodiesel refinery for processing jatopha seeds, which contain non-edible oil that can be turned into biodiesel - a non-petroleum product.

‘This investment in Eco-Energy allows Cathay Forest to advance into the world of biofuel production utilizing forestry assets and byproducts,’ said Anthony Ng, Cathay Forest's president and chief executive.