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OptiCept breaks into the massive forestry cuttings market in China

OptiCept Technologies (”OptiCept”) today announced that it has signed a Partnership Agreement with Guangxi Shichen Group (”GSG”), and together in collaboration with the top Chinese state research institute, Guangxhi Academy of Forestry, to start with a pilot project for treating Camellia oil cuttings and eucalyptus cuttings in Guangxi. The Parties aim to jointly strive to fulfill a treatment volume of 200 million cuttings within three (3) years.

An OptiBoost for cuttings application will be installed in Guangxi China to evaluate the treatment's impact on improved rooting. The evaluation will be done together with the Guangxi Academy of Forestry, the top state-owned technology center for forestry & planttech in Guangxi, with a prior focus on the camellia oil cuttings and eucalyptus cuttings. The customer will pay EUR 35 000 for the initial evaluation of 6 months.

According to the Agreement, the parties will establish a local PlantTech Lab & Engineering Center at Guangxi Academy of Forestry, and further join their efforts to accelerate the commercialization of OptiBoost for camellia oil cuttings, eucalyptus cuttings and other local cuttings towards end-growers in Guangxi and the ASEAN market. After the successful Evaluation, the Parties are to jointly complete at least one major commercial project not less than 20 million cuttings for the first year; and strive to fulfill a commercial treatment volume of 200 million cuttings within three (3) years.

Guangxi is the largest forestry market in China which contributes EUR 120 billion GDP every year. It is also the largest plantation area for eucalyptus, with a total plantation size of 30.34 million hectares that contributes 70% of the wood in 2021. Meanwhile, since most of Guangxi’s geographic area is mountains, the government made an ambitious plan to grow camellia oil trees, a Chinese local high-end food oil, to contribute more revenues for rural farmers. The initial plan is to plant 200,000 hectares of camellia oil trees in 3 years. Guangxi Academy of Forestry has been working to solve the challenge of camellia oil cuttings and they find OptiBoost technology may contribute to the increased rootings and better survival. The parties also intend to explore the possibility to use OptiCept’s CEPT solution to extract more camellia oil.

”We’re glad to partner with OptiCept and bring the unique OptiBoost technology to Guangxi. Guangxi is the largest forestry market and I believe there is massive potential in the camellia oil, eucalyptus, and other cuttings. We’d look forward to our partnership with OptiCept and the commercial success in the near future.” says Mr. Lai, CEO of GSG. "We have demonstrated the potential and value through our pilots in South America, now we see similar opportunities in China, which is a market with fantastic potential in this area. I have high hopes that this will be the start of several deals in China and Asia", says Thomas Lundqvist, CEO, OptiCept Technologies.

About Guangxi Academy of Science Guangxi Academy of Forestry was established in 1956. It is the key laboratory of the State Forestry Administration for fast-growing timber breeding in South China and the supporting unit of 4 provincial (ministry) level key laboratories in forestry. It is also the ASEAN Forestry Cooperation Research Center of the State Forestry Administration in China and the Forestry International Science and Technology Cooperation Base of the Ministry of Science and Technology in China. Guangxi Academy of Forestry has cultivated more than 200 million eucalyptus clones, pine, fir, camellia oil, flowers, and precious native tree seedlings; established more than 130 technology demonstration bases and technology promotion service outlets across China, and established a total area of experimental and promotion forests of more than 1 million hectares.

About Guangxi Shichen Group (“GSG”) GSG is a plantTech and multi-investment group with headquarters in Naning, Guangxi. Its main business includes land development and investment, agriculture & forestry infrastructure investment, forestry technology & engineering, and etc. GSG has operations across Guangxi and has been working in Guangxi forestry for years. It also owns a 26.64 million square-meter plantation base for various types of local economic plants.


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