DGAP-News: Asian Bamboo leases 6,700 ha of bamboo plantations

 | Source: EQS Group AG EQS Group AG 

DGAP-News: Asian Bamboo AG / Key word(s): Contract
Asian Bamboo leases 6,700 ha of bamboo plantations

10.01.2011 / 00:01

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Hamburg, 10 January 2011 - Asian Bamboo AG ('Asian Bamboo', 'the Company',
ISIN: DE000A0M6M79, ticker symbol: '5AB', ADR ticker symbol 'ASIBY'), a
world-leading integrated company in the bamboo industry, is  pleased to
announce that it has signed lease agreements for six bamboo plantations
with a total size of 6,700 hectares (ha).

The plantations, located in Jianyang, Nanping, Shaowu and Longyan in Fujian
Province, are leased for 20 years and Asian Bamboo will pay a total fee of
around EUR 43 million (RMB: 382 million), translating into an average
leasing fee per hectare of EUR 6,466 (RMB: 57,022). As a consequence of the
current significant price inflation for food and materials in China,
overall food inflation is above 10% at the moment, the lease fee is around
6% higher in RMB-terms than previously. All other terms are similar to
those of previous leases. A part of the total lease fee will be paid this
quarter and the balance when the harvesting rights are transferred which we
expect will happen before the end of the year. The plantations are expected
to begin generating output in Q4 2011.

Lin Zuojun, CEO and founder of Asian Bamboo, commented: 'Securing new
plantation leases is the foundation of our business model. Including these
plantation leases, we now have a total plantation size of 54,511 ha, of
which 35,050 ha are mature plantations. As we are leasing plantations at a
faster pace than previously anticipated, we expect to reach a total
plantation size of at least 70,000 ha by Q3 2012 the latest. In the longer
term, we expect to reach a total plantation size of more than 100,000 ha.'


For enquiries, please contact: 

Asian Bamboo AG:
Peter Sjovall   +852-9385 3868
Chief Financial Officer
Anja Holst   +49-(0)40 37644 798
Investor Relations Manager


End of Corporate News

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10.01.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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Language:    English                                                
Company:     Asian Bamboo AG                                        
             Stadthausbrücke 1-3                                    
             20355 Hamburg                                          
             Deutschland                                            
Phone:       +49 40 37644 798                                       
Fax:         +49 40 37644 500                                       
E-mail:      info@asian-bamboo.de                                   
Internet:    www.asian-bamboo.de                                    
ISIN:        DE000A0M6M79, DE000A0M6M79                             
WKN:         A0M6M7, A0M6M7                                         
Listed:      Regulierter Markt in Frankfurt (Prime Standard);       
             Freiverkehr in Berlin, Düsseldorf, München, Stuttgart  
 
 
End of News    DGAP News-Service  
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108404 10.01.2011
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