Pursuing its consolidation strategy, the FORREST GROUP has just entered into major agreements, in Seoul on March 4th 2009 and in Beijing on March 5th 2009.

The FORREST GROUP and the South Korean company ALFONSO ROEWEMBERG KOREA (ARK) have entered on Wednesday March 4th, 2009 in Seoul, into two joint-venture agreements leading to the incorporation of two South Korean companies (FORREST ROWEMBERG ENERGY KOREA (FREK) and FORREST ROWEMBERG MINERALS KOREA (FRMK)).  These two companies will be investing in the energy and in the raw material sectors in the Democratic Republic of Congo (DRC).

The objective of the company FORREST ROWEMBERG ENERGY KOREA (FREK), geared towards the energy sector, is to rehabilitate existing infrastructures as well as to build new hydro-electrical installations. Beginning this month, FREK will start its first project to rehabilitate the hydro-electrical installations of Mwadingusha and Koni (DRC – Katanga Province). FREK will also launch projects geared towards the construction of new hydro-electrical factories in DRC and Africa. These investments are part of a long-term economic strategy in a key branch considering the high demand and needs in energies, particularly in DRC.

In addition, the FORREST GROUP and FREK have signed with the RDC Plan Minister, His Excellency Olivier KAMITATU, and with the South Korean company KOREA WATER RESOURCES CORPORATION (K-WATER), a world leader in hydropower technologies and management, agreements on cooperation within the power and water sectors in DRC.

As for the mining sector, FORREST ROWEMBERG MINERALS KOREA (FRMK) will be looking at creating new mining installations with the latest technologies, increase the value of mining outputs in RDC.

Simultaneously, the FORREST GROUP has entered into a cooperation agreement with the South Korean company KOREA RESOURCES CORPORATION (KORES) with a goal to examine joint opportunities for investments, acquisitions or joint business in the mining industry in DRC and Africa.

The FORREST GROUP is not ruling out any further important opportunities with its partners in DRC and in Southern Africa.

The FORREST GROUP is very optimistic about implementing these projects. Developments in mining and energy industries, whether in DRC or in Southern Africa, are of a major strategic importance and FORREST GROUP is looking forward being a part of it along with its partners K-WATER, ARK and KORES.

In Beijing on Thursday March 5th, 2009, the FORREST GROUP and the Chinese company SINOMA (a world leading company in manufacturing and supply of cement equipments) have entered into an acquisition agreement of a new cement plant producing up to 3300 tons per day. Such new plant will be located on the site of Lukala (DRC – Bas Congo Province) where a subsidiary of FORREST GROUP, CILU, already operates a cement plant.
 
Such investment is aimed to strengthen CILU’s leading position within the cement industry in DRC.

The implementation of such new factory will allow CILU’s production capacity to be increased to 5000 tons per day, which will consist in a major support in producing cement in RDC to meet the local demand.

Such projects in the energy, mining and cement works industries correspond to investments of several hundred million dollars.

The FORREST GROUP is also looking at its financing consolidation strategy.

Such financing means are intended to reinforce FORREST GROUP’s financing capacity as well as to allow its internal and external growth, particularly by increasing its current participations in key companies within its activity sectors or by taking on new participations in such key companies.

In such respect, despite the dramatic financial crisis currently shaking global markets, the FORREST GROUP wishes to reconfirm its current partners that it fully intends to implement all the projects in which it is currently involved.

Mr. George Arthur FORREST, President and CEO of FORREST GROUP made the following statement concerning the signed agreements and the financing development strategy:

“The signature of the contracts and agreements, which took place in South Korea and in China implements the motto of the FORREST GROUP “Together we build the future” and I’m confident that this constitutes a clear and strong signal towards the investors to take on a committed position. If the financial international crisis can slow down the decision process or some of the executions it certainly cannot be used as an excuse to cease from dynamically supporting the DRC, and Southern Africa in general, which is expected for their development and the well-being of its people.”
Pour George Forrest International Afrique (GFI/A),


Henry de Harenne
Conseiller en Communication
hdh.gfi@forrestgroup.com