Expanding UK Forestry Company Buys Plantations In Thailand

Online, August 17, 2010 (Newswire.com) - The acquisition is part of the planned expansion programme announced previously by Plantation Capital Plc. This step will enable them to offer investment packages to investors with the added security and transparency provided by a registered UK Plc company holding title on the underlying land.

The new plantation will be dedicated to growing bamboo. It is the fastest growing canopy for the re-greening of degraded lands and releases 35% more oxygen than equivalent timber stands. It is the most sustainable resource for timber and food in the world.

Bamboo has long been recognised by the Food and Agriculture Organization of the United Nations as well as most governments in tropical regions as a major commercial plantation crop. Over 2 billion people live in houses made from bamboo timber, and bamboo shoots are a staple diet for humans and animals throughout the Asia region.

Agri business week magazine recently ran an extensive research programme on bamboo, the results of which were published in the magazine (http://www.agribusinessweek.com/researchers-find-ways-to-improve-productivity-of-kawayan-tinik-bamboo/).
The research outlines the numerous commercial and environmental benefits which bamboo offers to the world's emerging market economies, with uses ranging from food and construction to clothes and biofuel.

Bamboo provides amazing versatility and has a wide range of commercial applications. Once bamboo is planted, new shoots can be harvested for both food and timber for up to 20 years. This is possible as every time a shoot is harvested it sprouts again naturally with very little management required. This makes bamboo the perfect crop to grow in tropical regions where large plantations can be established alongside small farmlands.

Bamboo can produce solid financial returns in as little as one year after planting, when shoots can be harvested for food production. These returns increase after 3 to 4 years when timber pole harvests can begin.

Plantation Capital Plc. has appointed Asia Plantation Capital and Thai Orchids Laboratories to manage their estates, bringing together over 40 years of combined plantations and bamboo expertise.

Plantation Capital Plc's Managing Director Dean Henry comments:-

"We have been researching the bamboo market for some time, having initially been concerned about forecasted returns and their achievability. We recently sent over our own team on a due diligence trip to gauge the commercial potential of bamboo.

As a result of our research we have decided to purchase our own plantations, with a view to growing bamboo for both food and timber production, which provides two solid revenue streams from diverse markets and maximises land use efficiently.

We intend to retain around 50% of the plantation output for the company as a buffer to enable us to support the yields of the remaining 50% we offer to our clients. This foresight allows the company to be flexible in the event of unforeseen events.

Alongside our existing teak, agarwood, gliricidia and agroforestry plantation projects bamboo is another financially sound and environmentally rewarding opportunity.

Our Agroforestry projects have recently been selected by the Sri Lankan government for a special award in recognition of our achievements in supporting the social and economic redevelopment of the country, and I look forward to attending the presentations in Colombo later this month.

I shall also take the opportunity to visit our teak, agarwood and bamboo plantations in Thailand where we hope to achieve further awards in recognition of our commitment to environmentally beneficial projects."

Notes to Editors:-

Plantation Capital Plc. is a UK based company and marketing arm of Asia Plantation Capital, based in Singapore.

Asia Plantation Capital currently own and manage hardwood and softwood forestry plantations on behalf of private clients, as well as sustainable farming projects in Sri Lanka, Thailand, Mozambique and Malaysia.