A new Chinese company in Guyana intends to focus on ‘finished’ lumber and is investing US$4.5M in a wood-processing plant to process logs cut from the Jaling concession.
The new company, it seems, has acquired a percentage of the interests of Jaling and will be investing in lumber processing on behalf of Jaling. This is likely to raise eyebrows as Jaling is supposed to be utilizing its logs for value-added processing. Jaling was in hot water last year for exporting logs rather than complying with its wood processing investment commitments.
Bai Shan Lin International Forest Development Inc has the rights to 400,000 hectares of forest for a period of 20 years, according to the company’s website. Officials of the company in Guyana were reluctant to speak to the press on its development. The website said the company will be processing logs harvested from the Jaling Forest Industries Inc concession. A source from Bai Shan Lin said that in addition to this, the company will be purchasing lumber for processing and resale both locally and overseas.
According to advertisements in the press, the company is now recruiting staff for its operations. The company is also inviting local companies to submit proposals to supply Bai Shan Lin with lumber for processing.
The company’s website said that it would be making flooring, multi-layer and multi-wood parquet surface materials, furniture and solid doors. A representative of Bai Shan Lin said the company will host a public forum to introduce itself in the coming days and that all statements would have to wait until that time. Jaling has been accused – along with other Asian multinational corporations operating here – of not engaging enough in value-added production of forest products. At the moment, the Guyana Forestry Commission (GFC) is conducting an investigation into accusations of transfer pricing in the sale of logs to overseas buyers.
Minister of Agriculture Robert Persaud said last week that the government is monitoring Jaling, along with another larger concessionaire, so that commitments that these companies made with regard to downstream processing will be kept.
Jaling has been under fire over log exports and its long delay in setting up a sawmill. The company said it has been testing the market with the export of logs of lesser known species and took umbrage to statements which suggested that Jaling was plundering Guyana’s forests.
Jaling also said it was bringing items into the country for the construction of a veneering plant. It said that the establishment of its sawmill in the Port Kaituma area was taking longer than expected because of land rights issues yet to be resolved. (Johann Earle)
