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Eucalyptus Project

Eucalyptus Project

Why Eucalyptus?

Why Eucalyptus?

Eucalyptus is known as one of the fastest growing commodity timbers in the world. The Brazilian species can surge from a sapling to a fully grown tree ready to be harvested in just 7 years, unlike its American counterpart which doesn’t usually reach the same height until around year 10. With ideal soil composition, plentiful rainfall and access to the latest state-of- the-art bio-engineering technologies, eucalyptus has increasingly replaced pine as the primary agroforestry crop in Brazil. Eucalyptus wood has a multitude of uses such as paper, pulp, cellulose, oil, charcoal, wood for energy and timber for construction and there is a healthy demand in Brazil with a number of established markets within the region of the project. In addition, eucalyptus trees have a high resistance to disease and pests. GWD proposed the eucalyptus project in late 2008, officially launching the project in 2009 before announcing the project closed in 2011.

Project Aims

The project aims set in 2008 focussed on the development of barren land situated within Bahia, establishing this land with fast growing eucalyptus crops. Final harvest was projected at taking place between years 6 through to 8 dependent on growth and / or market conditions. Currently the project is on schedule with first harvest progressing in 2017.

Project Aims

Current Status

Current Status

Due to substantial changes within the Brazilian steel industry, the company has turned its focus away from supplying eucalyptus charcoal domestically and as such has acquired export licences in order to explore a number of alternative markets in other regions. With the company negotiating with several end users primarily in Europe and North America the company is expected to export timber in 2018. In addition to this export markets the company is also in the planning stages of developing its own wood processing facilities in order to provide further added value at market. As such many of the companies earliest projects have now received independent valuation showing an asset value in excess of R$8 million, this value is expected to increase as further projects are independently valued over the coming months.

GWD EUCALYPTUS PROJECT | The Eucalyptus Project is currently fully subscribed.

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