South America
In South America, radiata pine and eucalyptus are the primary plantation species on upland sites, and short-rotation tree farming on agricultural sites comprises a relatively small niche. We expanded into South America based on the interest of investors, manufacturers and governments in the development of hybrid poplar as the third species of choice for markets such as chips, lumber, veneer, engineered products and biofuels.
We believe there are great opportunities throughout South America to expand the high-yield, fast-growing tree farm industry for multiple markets. We are developing key relationships with capital, industry and academia to deploy our elite plant material, acquire existing tree farm assets, develop new tree farms, link to key markets for wood products, and organize investment vehicles for realizing superior risk-adjusted returns in South America.
Core business groups in South America include:
Capital management
Our South America capital management group assesses the best structure and scope for South American tree farm fund development. In addition, we are developing a flow of investment opportunities that can be organized into a South American tree farm fund or can be available for existing timberland investment funds that are allocating capital to this region.
Tree improvement & nurseries
To expand our nursery operations with proven hybrid poplar varieties from the U.S. for testing and commercialization, we have developed a strong partnership with the University of Talca. The University helps us comply with the import quarantine protocol, establish centralized and satellite field test sites for our plant material, and collect data from these trials. Additionally, we have established our own nursery and testing sites on company-owned land near our headquarters and into the Patagonia region in the south of Chile.
Resource management
Our resource management group in South America applies the extensive experience of our general manager, Carlos Sierra Silva while at Shell Forestry in developing over 85,000 hectares (210,000 acres) of eucalyptus and radiata pine plantations. This group works with industry, governments, landowners and other interested parties to assess opportunities in high-yield, fast-growing tree farms throughout South America. We seek opportunities to acquire existing South American tree farms and to develop new tree farms in the region for various market interests (saw logs for lumber, chips for pulp and biomass for energy).
Product sales & trading
As in North America, we seek South American strategic partnerships with value-added processing companies and downstream customers that enhance the investment proposition for our managed tree farms. This group provides value by linking the wood from these types of tree farms to the highest-value markets over time.
Also of Interest
See our Tree Farm Capabilities for more information.
