Our market

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. In order to meet this demand the Company is building South American plantation forest assets as the Company believes that a confluence of current trends will continue to increase the attractiveness of owning and managing forest assets. In addition, as timber growth is predictable it provides a steady yield. The value of that yield is tied to commodity prices. The timing of the yield can be managed and either harvested on a predetermined schedule to generate a reliable pattern of timber production and wood sales revenues or opportunistically to take advantage of attractive market conditions.

The wood to be produced by The Forest Company’s projects is intended to be used within four different areas, namely:

  • Wood for renewable energy production
  • Pulp for the paper industry
  • Sawnwood for the construction and furniture industries
  • Charcoal and bio-carbon used in the steel and pig iron industries