The project is to invest in tree plantations and wood-related downstream manufacturing plants in China. The project will operate eucalyptus, acacia, pine and aspen plantations in three Chinese provinces, Guangdong, Jiangxi, and Jiangsu. In each province, the project will construct one or two manufacturing plants to produce wood related products such as particleboard and finger joint boards.

The project will have a significant development impact in that some of the trees that the project will harvest and replant are plantations for which the World Bank provided the original funding and the technical support to reduce pressure on China’s natural forest. The project will generate cash from tree sales and plantation maintenance for local inhabitants from these plantations. The project will also contribute to the improvement of the local communities'' living standards because the project will hire hundreds of local workers.

SFC has requested IFC to assist with financing this project because the IFC is still one of the few sources of long-term limited recourse finance in China today. SFC is also seeking IFC’s participation because of our financing experience in China including our ability to mobilize private financing.