The Lion Group has also ventured into the pulp & paper and wood-based industry through the privatisation of Sabah Forest Industries Sdn Bhd (SFI) in 1995. SFI operates a pulp and paper mill with a combined production capacity of 285,000 tonnes which produces high quality, woodfree printing and writing paper. The basic raw material, wood, comes from its own forest concession areas totalling 289,000 hectares of which 130,000 hectares are targeted for replanting. Within two years of taking over SFI, 30,000 hectares have been replanted and this is increasing at the rate of 10,000 hectares a year. SFI's downstream project includes an integrated timber complex costing RM128 million for wood-processing activities and production of sawn timber, plywood and veneer. The production capacity for commercial logs is 500,000 cubic metres; sawn timber : 100,000 cubic metres and veneer and plywood : 100,000 cubic metres. In its agri-products business, the Group has interests in oil palm and rubber plantations covering a total of 82,403 hectares in Malaysia and Indonesia.