ТИОНГХОК ЧАЙ

старший менеджер по инвестициям «Римбунан Хиджау Групп»,

руководитель проекта (Малайзия)

TIONG Hock Chai

Senior Manager on Investments, Rimbunan Hijau Group (Malaysia)

2

RIMBUNAN HIJAU GROUP

3

World Forest Area By Percentage (%)

Oceania5%

Europe5%

North America14.5%

South America23.5%

Russia 20%

Africa17.5%

Asia14.5%

850 Million Hectares

Source: FAO 2006

4

Annual Allowable Cut and Total Fellings In Russia (million m3)

0

100

200

300

400

500

600

700

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Year

mil

lio

n m

3

Annual Allowable Cut Total Fellings

Source: Russian Forest 2003

5

Production of Mechantable Wood By Regions In Russia (2003)

Far Eastern13.0%

Siberian26.9%

Northwestern32.9%

Southern0.2%

Urals7.0%

Central8.0%

Volga12.0%

Far Eastern Siberian Northwestern Southern Urals Central Volga

Source: Rosstat Statistics

6

Types Of Exported Forest Products In Russia

35%

23%

18%

11%

6%

2%1%1%1%1%1%

Roundwood

Sawnwood

Paper and Paperboard

Wood Pulp

Plywood

Furniture

Other Wood Articles

Fibreboard

Wood Chips, Particlesand Other ResiduesParticleboard

Other Products

Source: Federal Forest Agency

7

Trends in Exports And Imports Of Russian Forest Industry Products

3.7

4.5 4.44.9

5.2

1.1 1.31.7

2.0 1.8

0

1

2

3

4

5

6

1999 2000 2001 2002 2003

Year

Bill

ion

US

D

Export Import

Source: Rosstat, Karelijastat

8

Exporting Country of Russia Forest Products

22%

11%

10%

5%3%3%3%

3%

2%

2%

2%

2%

32%

China

Japan

Finland

Germany

UK

Kazakhstan

Ukraine

US

Egypt

Estonia

Sweden

Korea

Other

Source: Federal Forest Agency

9

China's Timber Product Import By Product Type

0

5

10

15

20

25

30

35

40

45

50

1997 1998 1999 2000 2001 2002 2003 2004 2005

Year

Impo

rt (M

illio

n M

3)

Logs

Sawnwood

Woodchip

Fibreboard

Plywood

Particleboard

Veneer

Other

Source: China Customs Statistics

10

Wood Based Panel Consumption In China

0

10

20

30

40

50

60

1996 1997 1998 1999 2000 2001 2002 2003 2004

Year

Mill

ion

M3

Plywood Fibreboard Particleboard Wood Based Panel

Source: CCWC

11

China Furniture Production And Export

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Year

Mill

ion

US

D

Total Furniture Production Total Furniture Export

Source: Vancouver Conference Dec 2005

12

Source: Official Website of Khabarovsk Krai

Distribution of Foreign Investments By Industry In Khabarovsk Krai (1989-2005)

Transportation8%

Ferrous Metallurgy20%Trade And Public

Catering4%

Fuel Energy19%

Mining Industry20%

Other 4%

Forestry And Wood Working

25%

13

Rimbunan Hijau Sawmill

14

Rimbunan Hijau Sawmill

15

Sawmill Warehouse

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Rimbunan Hijau MDF/THDF Process Flow Chart

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Rimbunan Hijau MDF/THDF Plant Layout

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MDF/THDF Plant Overview

19

MDF/THDF Main Processing Line

20

Wood Yard

21

Wood Yard

22

Debarking

23

Dryer

24

High Tech Continuous Pressing System

25

Star Cooler

26

Control Room

27

Warehouse

28

Energy Plant

29

MDF Samples And MDF Final Products

30

Special Investment Incentive And Tax Privilege

• Pioneer Status with income tax holiday of its statutory income for a period of 5 years extendable for another 5 years.

• Investment Tax Allowance of 100% on the qualifying capital expenditure incurred for a period of 5 years extendable for another 5 years

• Full exemption from import duty and sales tax on machinery and equipment for MDF/THDF plant

• Full exemption from import duty on direct raw material/components used for manufacture of MDF/THDF for export

• Full exemption or reduction of Value Added Tax (VAT)

• No wealth and property tax

• Preferential rate to export of value added forest product

ТИОНГХОК ЧАЙ

старший менеджер по инвестициям «Римбунан Хиджау Групп»,

руководитель проекта (Малайзия)

TIONG Hock Chai

Senior Manager on Investments, Rimbunan Hijau Group (Malaysia)