Chile is HOT, HOT, HOT

Since the mid-1950's Chile's wood product trade hassoftwood markets are here to stay.
been rapidly expanding due to the cultivation ofAnother significant trend emerging within Chilean wood
"plantation grown" softwood and hardwood trees.companies is the investment in other Latin American
Chile's unstoppable growth is also projected to risecountries. The recent signing of various free trade
within the next 15 years, making Chile an even greateragreements with Central American countries, including
player in the world's wood product market. Chile is notCosta Rica, has resulted in the establishment of
the only country in South America benefiting from suchsatellite businesses that directly market Chilean wood
fast-growing plantations. Both Brazil and Peru areproducts. A Mexican wafer board manufacturer and
beginning to enter the wood product market, but notan OSB plant in Brazil are part of Chile's ongoing
with such ferocity and versatility. Chile hasmergers. While plantations continue to emerge in Brazil
systematically managed to capitalize on both the rawand Venezuela totaling a near $40 million in
product production and the bi-product productinvestments, Chilean firms are confident the returns will
production of its wood products.be far greater than even they could have imagined.
Experimentation with such fast-growing hardwoods,So what does this all translate to?
primarily eucalyptus, has produced positive resultsChile has clearly proven itself to be a wood producing
prompting Chileans to establish more experimentalsuccess story. Because of trade incentives, Chile has
plantations. Such bold moves are based on the notionestablished some of the world's most impressive
that the fast-growing hardwoods could outperformplantations and no longer relies on native forests. In
Radiata Pine and provide the industry with anaddition, the Chilean wood products industry has
increased volume of high quality fiber as well as sawimplemented a fully integrated supply and management
or veneer logs within 14 years of plantationsystem that represents one of the best models of
establishment.efficiency within the industry. It can be expected that
Two trends worth noting, particularly among the largerChile will continue to prosper and emerge as one of
wood product companies in Chile, are the high levels ofthe world's most important wood products supplier
horizontal integration within the plantations totalresulting in an increased global reliance on South
operations and the extensive investment made inAmerican and Latin American plantations.
technology used throughout operations. Both of theseThis article and one-way link advertisement provided
trends can be expected to continue. Hardwood andby LinkAcquire.