Nature Flooring

completed

The Nature group of companies comprises China Flooring Holding Co., Ltd, (Nature or the company) an offshore holding company (being incorporated) and its operating companies located in China. Having established itself as the leading solid wood flooring maker in the Chinese domestic market Nature would like to consolidate its position by:- expanding and modernizing its manufacturing capacity particularly in the laminate and engineered flooring segments; - securing its fiber supply by investing in own plantations; and - improving its overall competitiveness through additional investments in brand marketing and distribution. The company’s investment program which is expected to be implemented over the 2007-2010 period includes expansion of production facilities; establishment of new production facilities for the production of engineered and laminate flooring; backward integration into the production of veneers and core; production of Medium Density Fiberboard, development of plantations in China and continued investment in its brands and distribution channels. By the end of 2008 Nature will own and operate eight plants located in the provinces of Guangdong, Heilongjiang, Jiangsu and Jiangxi in China.