SilviPar’s area of operations in Paraguay was deemed to be the best remaining location for an efficient, sustainable and profitable wood fiber plantation able of sustaining a full-scale pulp mill. After 5 years of plantation trials and organizational build-up, SilviPar has now proven the company’s ability to become the raw material base for the world’s most profitable wood-processing industries.
The growth rate after 3 years is currently 40 m3 /ha per year and is expected to increase to 45 - 55 m3 / ha, just as the team has seen in similar plantations in Brazil and Uruguay. The impressive biological growth rate is thanks to the high rate of rainfall, good soil, right choice of trees planted and state-of-the-art, efficient forest management.
There is over 700,000 ha of land that suitable for forest plantation within 100 km radius form SilviPar’s riverside location. 160,000 ha of this has been carefully assessed by the SilviPar team and offered to acquire have been received. This land is today the core part of SilviPar’s land data base. The area in which the plantations lay in today is right by the river Parana connecting Paraguay with Brazil, Argentina, Uruguay and to deep sea port all year round. This enables SilviPar to cost efficiently transport its products by barges on the river to deep sea ports. Such transportation is already highly developed, by the soy industry, and the Parana river is today home to the third largest barging fleet in the world.
Due to the high biological growth rate, the trees are ready for harvesting after only 7 years.
In the pictures to the right you see:
SilviPar supplies two classes of wood; pruned logs (also known as veneer logs) and pulp wood (which can also be used as biomass fuel).
There are 16 plywood producers in Paraguay today, that constitute the local market for SilviPar. There are not yet any pulp mills in the country, and therefore the pulp wood for the moment sold as bioenergy to the soy and rice sector where it is used for drying. There are, however, two pulp mills underway in the region and this constitutes a future market potential for SilviPar.
SilviPar has now verified the location as an exceptionally good area to grow a forest plantation with its 1,875 ha planted land and sees great potential to expand its business. The next phase is to grow to >30,000 ha planted land and at the same time grow its customer base with more plywood customers and pulp mills. After that, the objective is to continue to expand SilviPar’s assets and operations to 60,000 – 70,000 ha.
”Based on my decades of experience in establishing forest plantations and mills in South America, I can confirm that SilviPar’s location is outstanding. The combination of logistics, available land, high biological growth rates and competent work force makes this an exceptionally good area for large scale forest plantations.”
Nils Grafström, Chairman of SilviCapital
A company building the base for the most Profitable and Sustainable Forestry Industry in the World. Managed by people with broad and long experiences working within the forest industry globally.
22 de Setiembre S/N Esquina Padre Mauricio
Edificio Brunaga ll
Coronel Bogado, Itapúa