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Chile Is Hot Hot Hot!
By David C Skul, Fri Dec 9th
Since the mid-1950's Chile's wood product trade has been rapidlyexpanding due to the cultivation of "plantation grown" softwoodand hardwood trees. Chile's unstoppable growth is also projectedto rise within the next 15 years, making Chile an even greaterplayer in the world's wood product market. Chile is not the onlycountry in South America benefiting from such fast-growingplantations.
Both Brazil and Peru are beginning to enter thewood product market, but not with such ferocity and versatility.Chile has systematically managed to capitalize on both the rawproduct production and the bi-product product production of itswood products. Experimentation with such fast-growing hardwoods, primarilyeucalyptus, has produced positive results prompting Chileans toestablish more experimental plantations. Such bold moves arebased on the notion that the fast-growing hardwoods couldoutperform Radiata Pine and provide the industry with anincreased volume of high quality fiber as well as saw or veneerlogs within 14 years of plantation establishment. Two trends worth noting, particularly among the larger woodproduct companies in Chile, are the high levels of horizontalintegration within the plantations total operations and theextensive investment made in technology used throughoutoperations. Both of these trends can be expected to continue. Hardwood and softwoodmarkets are here to stay. (Article continued below)
Another significant trend emerging within Chilean wood companiesis the investment in other Latin American countries. The recentsigning of various free trade agreements with Central Americancountries, including Costa Rica, has resulted in theestablishment of satellite businesses that directly marketChilean wood products. A Mexican wafer board manufacturer and anOSB plant in Brazil are part of Chile's ongoing mergers. Whileplantations continue to emerge in Brazil and Venezuela totalinga near $40 million in investments, Chilean firms are confidentthe returns will be far greater than even they could haveimagined. So what does this all translate to? Chile has clearly proven itself to be a wood producing successstory. Because of trade incentives, Chile has established someof the world's most impressive plantations and no longer relieson native forests. In addition, the Chilean wood productsindustry has implemented a fully integrated supply andmanagement system that represents one of the best models ofefficiency within the industry. It can be expected that Chilewill continue to prosper and emerge as one of the world's mostimportant wood products supplier resulting in an increasedglobal reliance on South American and Latin American plantations. This article and one-waylink advertisement provided by LinkAcquire.com
About the author:David C Skul - CEOLinkAcquire.com and Relativity, Inc. ispleased to serve his clients through traffic generating articlesand one way links. | 