LONDON (Alliance News) - Active Energy Group PLC Tuesday said it has inked a memorandum of understanding with a regional government in Ukraine for the management, development and sustainable commercialisation of around 186,500 hectares of forestry.
The mature commercial forestry is located in northern Ukraine, and under the terms of the memorandum of understanding, Active Energy will work to introduce international forestry and environmental standards of sustainable forestry management to help improve the value and yield of the forests.
It will do this by implementing more efficient logging practises and technologies, and the efficient use of merchantable timber, Active Energy said.
"This is an encouraging development for the group. We are a major player in Ukraine and this proposed arrangement with the government recognises our ability to monetise forestry assets through the implementation of all of our services, in which all Active Energy's divisions work together to provide a single solution, delivering enhanced value to our commercial partners," said Chief Executive Officer Richard Spinks in a statement.
"We believe that this will be the first of a number of agreements within Ukraine and it represents an important milestone for Active Energy's operations within the country and the region," Spinks added.
Shares in Active Energy were down 5.2% at 2.89 pence Tuesday.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Active Energy (AEG)