Chile is a forest country with about two million hectares planted with pine and eucalyptus, creating a solid base for the export sector that grows more than 10% each year and sends its products to practically all the timber markets around the world. Forestal del Sur S.A. (FDS) was founded in 1988 in order to supply woodchips and pulp logs for the pulp and paper industry in Japan, Norway, Sweden and China. The company’s activities are concentrated in two areas: Puerto Montt (X region) where FDS owns certified FSC eucalyptus Globulus plantations and its shipping activities of eucalyptus Globulus are made through the port of Calbuco, and Concepción (VIII region) where FDS concentrates its eucalyptus and Radiata pine shipping activities, mainly through the port of Puchoco. The headquarters are located in Santiago (Metropolitan region). FDS has been flexible enough to adapt to the changing world, taking advantage of the opportunities offered by the international market and organizing its activities around long-term projects. It is financed by local capital and partly owned by the management of the company, together with its main supplier, FORESA. One of Forestal del Sur’s advantages is the long term relationships with its customers. The initial Puerto Montt project, which required to export pulp wood in the form of woodchips by the year 1990, was carried out under a 10-year contract with Mitsubishi Corporation and since then more than 5 million tons have been exported for the production of industrial paper. FDS has developed long term relationships with major clients in Europe, such as Södra, and in Japan with Mitsubishi Corporation, with whom it has maintained a continuous commercial relationship for more than 17 years, which has allowed FDS to develop an in depth knowledge of the Japanese market. The increasing production demand encouraged FDS to start up its own plantations of eucalyptus Globulus, a strongly demanded species in the pulp wood market, due to its homogeneity and excellent performance. In 1990 FDS started up a forestation company called Forestal Los Lagos, which today owns about 12,000 hectares planted with eucalyptus Globulus in the Puerto Montt area. This company was initially owned by a Swiss company, Xstrata AG, from whom FDS, together with Forestal Arauco, purchased it in January 2005. Today Forestal Los Lagos is owned 80% by Forestal Arauco and 20% by Forestal del Sur. During the 17 years that Forestal del Sur has been operating, it has delivered outstanding Customer value through prime quality products and performance reliability.