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Market overview

The global demand for wood has increased and will continue to increase substantially over the foreseeable future. The greatest contribution to this growth in demand for industrial timber is expected to come from Latin America, India and China. To meet the demand we are building South American plantation forest assets, because we believe that current trends are coming together in a way that will make owning and managing forest assets an increasingly attractive prospect.

Timber growth is predictable. It provides a steady income yield. The value of that yield is tied to commodity prices. The timing of the yield can be managed and harvested either on a predetermined schedule to generate a reliable combination of timber production and wood sales revenues, or opportunistically to take advantage of attractive market conditions when they occur, while the plantations always continue to grow.

The wood produced by The Forest Company’s projects is destined for use by five types of industry:

  • Renewable energy production
  • Wood-based panel industry
  • Pulp and paper industry
  • Sawmilling industry for construction, crating and furniture
  • Biocarbon production for the pig iron and metal alloy industries