INVESTMENT IS RENEWABLE ADN INFINITE

After 16 years of having planted it is harvested and planted again and this process continues like this.

We should also add that trees need carbon dioxide from the atmosphere and they release oxygen helping to reduce pollution and improving the environment.

This is a mid-term investment taking into account its monetary return and low risk.

The forecast consumption of wood, cellulose fibers or pellets for renewable energy points out a significant growth at global level since the increase of production is limited because of the low availability of suitable lands for planting.

We offer a forest in an ideal place for a great annual growth, given the type of soil, temperature and high levels of rainfall, added to this you can smell and breathe the clean air and take pleasure in the peace of the forest, enjoy the beauty of the place surrounded by a virgin jungle inhabited by countless unique plants and wild animals in a context of environmental protection that is very close to the spectacular Iguazu Falls (60 kilometers) and famous Mocona Falls. (This can be appreciated in the photographs included in this page).The border areas with the Republic of Brazil are just 70 km and 40 km away.

Argentina and Brazil are partners in the free trade agreement “Mercosur” .The economic growth forecast for Brazil dragged economic growth of the entire region, generating a market for large volumes of raw materials globally. Higher demand for timber results from an expanding global market for wood products and a shifting emphasis to renewable resources. Increasing global demand for forest products is expected to continue due to worldwide demographic trends.

GENERALITIES OF THE FOREST BUSINESS IN ARGENTINA

Argentina presents important advantages for the forest activity, on one side because of the about 20 million hectares of lands which are apt for forest use, especially in some locations such as the province of Misiones, which receives 2.000 milimetres of rain annually, an average temperature of 21 C° and land with a high forest quality (deep red lateritics) which turns the region into one of the best in the world, registering with new genetic materials numbers over the 30 m3 per year per hectare.

As regards competitiveness, we have Law N° 25080 and extending Law Nº 26.432 of forest grants which guarantees fiscal stability on the approved starting business for 30 years and exempts it from income taxes to the development of forest mass.

KELSTA S.A.

It is a forest company which started its activity in 1977 by buying lands and seeding them. Nowadays, it has 735 hectares of land with different plantations of different ages and since the original ones have already been taken, the new ones are from year 2000 on. They are distributed in two different properties, one of 472 hectares located in Colonia Delicia to 55 km away from the city of Eldorado and the other one has 273 hectares, on Provincial road N° 17 belonging to the county of San Pedro to 80 km from the city of Eldorado and to 35 from the limits with Brazil. In both cases we mention the distance to Eldorado because it is the main forest industry centre of Argentina, holding 30% of the national production of woods.

Currently, we have 735 hectares of land and 655 hectares of forestry. The plantations’ ages are the following:

  • Year 2000 80 hectares
  • Year 2003 60 hectares
  • Year 2004 65 hectares
  • Year 2005 60 hectares
  • Year 2006 81 hectares
  • Year 2007 71 hectares
  • Year 2008 68 hectares
  • Year 2009 52 hectares
  • Year 2010 98 hectares
  • Year 2011 30 hectares

The graph shows a model curve of the evolution of the forest mass in tons for the coming years, estimated based on a recent inventory.