Asia Plantation Capital commits to working with China's leading Agarwood industry experts

SINGAPORE, Nov. 12, 2014 /PRNewswire/ -- Asia Plantation Capital has recently expanded into mainland China. The country is currently reputed to be the world's largest and fastest growing single market for Agarwood - or 'Aloeswood', as it is known in the world's most populous nation.

Expansion

Stage one of this expansion has been a joint venture with China's Hua Lin aloes Biological Engineering Co. Ltd., to install and operate an advanced Agarwood (Oud) oil distillation factory, as well as to manage an existing wood chip and incense manufacturing and packaging factory.

The proprietary systems developed by Asia Plantation Capital in Thailand – those that facilitate the extraction of consistent and high quality Oud oil - will be established in a purpose-built factory of 30,000 ft² in Dongguan, situated in its own 100 acre Agarwood park, less than 30 minutes from the border with Hong Kong.

Tradition

The Hua Lin aloes Biological Engineering Co. Ltd., has been manufacturing incense and wood chip products from Agarwood for many years. Part of the research and expansion programme initiated by the company was to source and effectively deploy the best and most advanced systems for Agarwood oil extraction, as well as for the grading and manufacturing of high quality wood chips and carvings.

Sourcing

After two years of research and having visited and assessed several companies, executives from Hua Lin aloes Biological Engineering Co. Ltd. and its Board of Directors decided to enter into a manufacturing partnership for Oud oil in mainland China, utilising Asia Plantation Capital's advanced systems. This is set to become part of the company's continued investment in research and development, and will be fully managed and operated by Asia Plantation Capital. 

Relationship

Spokesperson for Asia Plantation Capital and Chinese Liaison Officer, Yan Peng, said,  "We are proud and honoured that China's Hua Lin Group has chosen to work with Asia Plantation Capital, and establish a new joint venture business in developing and expanding  the manufacturing and Oud oil distillation factory in China. This gives us a major competitive advantage in reaching the Chinese market with our high quality Agarwood products, as well as added export potential from the factory to other markets around the world. This allows us to leverage our experience with Hua Lin aloes Biological Engineering Co. Ltd., who have been producing incense and wood chips for many years."

When asked about today's market, Yan Peng said, "Currently, China is reported to import, officially, more than 460 tonnes of Agarwood annually, and now we at Asia Plantation Capital aim to achieve a large percentage of this market from our plantations in Thailand and Malaysia. We can now process the raw materials produced on our plantations in Thailand and other countries in mainland China, using systems exclusive to Chinese markets."

Market

Yang Peng continued, "Given that only a small percentage of the Agarwood trade in China - and indeed around the world - is actually officially recorded, the real figures and demand could be even higher. Conservative estimates place the number of retail shops in China selling Agarwood chips, biomass, medical products and oil, at over 5,000; with more than 400 in Beijing alone. Fujian province boasts approximately 1,200 Agarwood shops, and it looks as though that number could even be on the rise."

Expertise

As a further commitment to the Chinese market and expanding its proprietary knowledge base globally, Asia Plantation Capital is proud to welcome Dr Haofu Dai to its full time Scientific Advisory Board.

Dr Dai is one of China's and the world's foremost and most respected authorities on Agarwood, and in particular advanced inoculation systems. He now joins Thailand's Dr Pakamas Chetpattananondh and SKP Engineering on the company's Scientific Advisory Board.

Dr Dai is also Deputy Director of the Institute of Tropical Bioscience and Biotechnology, and the Chinese Academy of Tropical and Agricultural Science – an institution dedicated to research and development in the agricultural biosciences sector.

While at the Hainan Li Medical Resource Research and Development Centre in China, Dr Dai spent more than 10 years of his medical research programme exploring Agarwood and its various facets. His research included detailed study of, and investigation into the production and systems of domestic Agarwood production in China, as well as in 10 other countries - including Vietnam, Indonesia, Malaysia, Laos, Myanmar and Thailand – all of which currently host operational Asia Plantation Capital projects.

Research

During this time, Dr Dai perfected and patented a unique inoculation system, previously used only in China, which causes the whole tree to produce Agarwood resin in response to the introduced infection. Asia Plantation Capital has carried out extensive trials in Thailand and other markets, and is now adopting this system where conditions have proven to be propitious.

The patented system allows deep infections throughout the entire tree over a protracted length of time – even including the roots. This dramatically increases the volume of useable and infected biomass within the tree for oil production, as well as for the infected chips that produce consistent, organic end products. 

Development

CEO of Asia Plantation Capital, Barry Rawlinson said, "We are proud to be at the forefront of constant and improving research and development into the best and most efficient systems to stimulate resin production within the trees. We are also committed to improvements in distillation, extraction and processing, to ensure that our end products are consistent and of the highest quality."

He continued, "This new system developed by Dr Dai is unique, as it allows the trees to continue growing, and for the system to permeate through the entire tree over a period from between 2 and 5 years. Once an infection peak is reached, the trees begin to deteriorate and can even die if left for too long, and Dr Dai's original thinking and expertise has obviated this problem. This really is a major breakthrough in an already proven industry which has the potential to add even more value and production possibilities from the trees we grow on our managed estates. We intend to share this system with other growers and producers on an 'outgrowers' programme, in which Asia Plantation Capital will undertake to buy back the infected trees once maturity has been reached. This will enable us to maximise our market share and control the quality of end products derived from the Agarwood tree, using standard processing and distillation systems linked to proven inoculation techniques. The end oil and wood chips produced from this system are also consistent with our own extremely high standards."

Message

Dr Dai has been seen regularly on TV in China - appearing on both CCTV (China Central Television) Channels 1 and 2, as well as Channels 4 and 10 - where features and documentaries on the importance of Agarwood and Aloeswood within Chinese society have been in focus. Dr Dai's commentary as a leading Chinese Academic specialising in Agarwood, has leant further weight and significance to an important industry in the People's Republic.

Later this year Dr Dai will be publishing a book entitled 'The Global Agarwood Industry', which will provide a fascinating and trenchant insight into the industry. It's a book that has been 10 years in the making for Dr Dai (in terms of both writing and research), and will include input from many of his esteemed academic associates.    

Quality

Recent independent test results from its distilleries, published by Asia Plantation Capital, have shown that their Oud oil is rated as 'A+'. This is a result of the assessment of 9 main organic components, including agarospirol, eudesmol and guaiol. These are the same components that can be found in the company's wood chips, and produce a consistency in each batch (duly analysed) that other growers (using 'cottage industry' style methods) find impossible to emulate. This is of vital importance for end user markets in medicines, perfumes, pharmaceuticals and cosmetics.

Notes for Editors:

For further information, please contact:

Adrian Heng
Group Marketing Director
Email: adrian.heng@asiaplantationcapital.com
Office: +65 6222 3386
Mobile: +65 9750 7440

About Asia Plantation Capital

Quick facts:

• US$ 600 million - combined value of assets owned and under management
• US$ 53.5 million - turnover in the last financial year
• US$ 100 million - turnover forecast for current financial year
• 2,000,000 - Aquilaria trees today, on Agarwood plantations.

Asia Plantation Capital (APC) is the owner and operator of a diverse range of commercial plantation and farming businesses across the Asia-Pacific region and around the world, and is part of the Asia Plantation Capital Group of associated companies. Its focus is on multicultural and diverse plantation projects geared to the domestic and commercial demands of the countries in which it operates. Working closely with, and supporting local communities, is an underlying core principle of the APC business, providing social and cultural support, as well as investment, to move these communities away from deforestation and illegal logging activities, previously seen as a main source of income in some regions of Asia. Established officially in 2008 (although operating privately since 2002) the group now has plantation and agricultural projects on four continents, with operational projects at various stages in Thailand, Malaysia, China, Laos, India, Cambodia, Sri Lanka, Myanmar, Vietnam, North America and Europe.

Promoting the use of sustainable and certified wood is the best way of preventing deforestation, protecting biodiversity, and combatting poverty in the tropical rainforest regions. For the yachting sector (a major user of teak) which strives for excellence and which is already involved in environmental efforts, this is also a way of ensuring that no wood from illegal logging is used.

About Hua Lin aloes Biological Engineering Co Ltd.

China's Hua Lin aloes Biological Engineering Co Ltd. has been producing and manufacturing Agarwood (aloeswood) products for more than 20 years, supplying the Chinese domestic and export markets.

Committed to manufacturing in an environmentally friendly and ecologically sound manner, Hua Lin is not only in a position to guarantee the supply of Agarwood products to an ever expanding market, but can also assure end users of the high quality of its products. This has made it one of the most trusted and sought after suppliers of Agarwood products to Southeast Asia and beyond.

Agarwood, and the Oud oil that is derived from it, is an increasingly precious commodity that has been used in a variety of cultures for thousands of years. It has been a component in religious rites, incense burning, and for the innumerable health giving properties for which the mystical substance has become renowned.

Today, Oud oil is one of the most desired ingredients in high-end fragrances, and has become an essential component for many of the world's elite perfumers. This is in addition to its high demand in the cosmetics and pharmaceutical industries.

At the very forefront of cutting-edge technologies in the manufacturing processes for Agarwood, China's Hua Lin aloes Biological Engineering Co Ltd. specialises in integrated high-tech enterprises and product development. It is currently in collaboration with the Chinese Academy of Forestry, Guangxi University, as well as the Chinese Academy of Medical Sciences.

China's Hua Lin aloes Biological Engineering Co Ltd. combines modern business practices and an entrepreneurial spirit, with a respect for the traditions inherent in a substance that predates civilisation. Becoming part of the expert manufacturing arm for Asia Plantation Capital is another exciting development for the established and well respected company.

China's Hua Lin aloes Biological Engineering Co Ltd. has been identified by Asia Plantation Capital as a suitable business partner, sharing as it does the core values of sustainability, corporate responsibility and environmental awareness, as well as a diligent approach towards all investors and stakeholders.