Production of forest biomass

Production of forest biomass

• The NFCF has up and operates wood pellet manufacturing facilities to ensure the stable production and supply of forest biomass. By supplying and increasing the use of wood pellets, which are attracting interset as an eco-friendly energy source, we are taking the lead the lead in low-carbon green growth and contributing to maitiagting climate change.

Seven wood pellet manufacturing facilities in operation

• We continue to espand our wood pellet manufacturing facilities to create a stable supply base. Maintaining grade one pellet quality through regular quality inspection, we supply only the finest-quality wood pellets.
  ??Jungbu Lumber Distribution Center, Yangpyeong County Forestry Cooperative, Danyang County Forestry Cooperative, Pohang City Forestry Cooperative, Sancheong County Forestry Cooperative, Sejong City Forestative, and Seogwipo City Forestry Cooperative

Establelishment of a stable supply system

• To ensure the convenience of users, as well as forest owners and cooperatives that use wood pellets, the NFCF set up a distribution network that is linke to sales agencies nationwide. We ensure a stable supply of wood pellets to consumars through diverse distribution channels, including forest-product markets, lumberyards, lumber agencies, manufacturing facilities, and online sales.

Greenhouse gas and energy verification

• In accordance with the Low Carbon Green Growth Basic Act, the NFCF has been designated as an organization that verifies greenhouse gases and energy (May 25, 2011). We perform our verification duties, including that of greenhouse gas emissions level, with the utmost dedication and accuracy.

Overseas Afforestation Projects

Vietnam

• Through the Seyang Cosmo Inc., as a subsidiary of NFCF, we have set up a joint-venture company with the Vinapimex(Vietnam Paper Industry Association) in 1994 and secured 16,000ha forest land in Ba Ria-Vung Tau and Binh Thuan Province for afforestation and reforestation with acacia trees, which is a tropical fast-growing species, and created overseas timber supply bases in the process. In tandem with planting fast-growing species, going forward with undertaking pilot project of paulownia trees, as a medium and long term growing species, we steadily keep diversifying our business fields and afforested species. In 2002, we had acquired Vietnamese partner's share and launched Sanrimjohap Vina Co., Ltd., as a corporation sole, laying the groundwork to pursue the business independently.

Woodchip production

• To use afforested trees for domestic pulp and paper, the NFCF have built a woodchip production facility with a 50,000 BDMT annual capacity on a 60,000??site in Nhon Trach District of Dong Nai Province. To facilitate shipment, a dedicated port was built to handling exports of woodchips produced there. Since 2000, in a first among companies which are in overseas forest development, the NFCF has lumbered trees we had planted, processed them into chips, and supplied them to Korea as raw materials for domestic pulp and paper, thereby contributing to import replacement.

Indonesia

• Following a forest survey aimed at securing suitable forest land in Indonesia in 2006, the NFCF signed afforestation co-operation agreements with the Perum Perhutani(State-owned Corporation), Inhutani(State-owned Corporation), Korindo Group, and the KPWN(Forestry Department Employees Association) to initiate projects. In March 2009, we signed an agreement with Perum Perhutani to jointly afforest 10,000ha in West Jave and embarked on afforestation projects of Melia azedrach and Albizia falcataria in Teluk Jambe. In January 2010, we signed an agreement with KPWN for a Tectona grandis afforestation pilot project and secured 10 ha forest land. In March 2011, in order to scale up these projects, we signed a joint afforestation agreement of 37,000 ha with Inhutani II in Kota Bharu, South Kalimantan. We have planed to plant acacia and rubber trees and afforested about 12,000 ha. Going forward, with the goal of planting 100,000 ha of new forest land in Indonesia, the NFCF plans to secure additional forest land and launch afforestation projects annually. we are also trying to drive a diversity of the afforested species and our fields of business.