Acacia Mangium Project
Why Acacia Mangium?
Our Acacia Mangium Project (White Teak) is one of the most exciting investment opportunities in our agro-forestry portfolio because of its diversity of end user markets where the possibilities are vast and varied. Simply put; we plant, manage and harvest the trees and process the timber in order to obtain the best possible prices under the direction of our clients.
Acacia mangium is a hardwood tree with a density of between 520-690kg/m3 at 12% moisture. It has an excellent growth rate and is generally considered ready to be harvested after 9 years of its life cycle.
The Acacia Mangium Products…
Acacia Mangium is a very durable hardwood that suits the conditions in Bahia State, Brazil. Within the Acacia Mangium Project, there are two separate products for our clients to obtain returns:
Acacia Energy generates revenue from the 1st and 2nd thinning of trees, in year 3 and 6 of the 9 year project, and is sold into the energy markets within Brazil.
Acacia Premium, which is GWD’s principle goal for the project, producing Grade 1 quality, kiln dried, sawn and prepared wood from the final harvest at year 9 of the project, through a progressive tree selection process. Acacia Mangium wood is easy to work with and maintain, improving its attractiveness to buyers.
Brazil’s Growing Economy
Brazil has the 9th-largest economy by nominal GDP in the world and is a leading emerging market.
It is showing signs of revived growth after an unsettled political period, with important investors such as Rolls Royce and China showing renewed interest in Brazil.
The government is continuing its efforts to crack down on the illegal timber trade. Brazil has achieved an overall reduction of its deforestation by 75% in 2014, compared to the 1995-2005 average.