Restructuring and lack of financing are hampering Asian timber company, Bai Shan Lin Forest Development Inc. in meeting Government’s year-end edict to begin substantial value-added production or face the revocation of its contract.
According to GINA, Minister of Governance Raphael Trotman at a post -Cabinet briefing at the Ministry of the Presidency yesterday said that when he last spoke with the company three weeks ago, he was informed that they were in no position to have the mills that are expected within the next 10 months, and have instead asked for two years to acquire them.
“We have had discussions with them about an alternative mill or wood mill that would be available here in the region, but that is ongoing,” Trotman said.
He said that much depends on Bai Shan Lin securing new financing. He said that while this is on-going, the company’s restructuring, engagement between the government and the wood company is “on pause.”
“I am led to believe that the company is in the process of restructuring and when this is over, under the guidance of the Chinese government or state, then it will reengage with government,” he said, according to GINA.
Bai Shan Lin has been accused of focusing only on the export of logs while making lofty promises of value-added production. The previous PPP/C government had been accused of facilitating this.
