Forestal del Sur’s main business is the export of eucalyptus globulus woodchips and pulp logs to Japan and the Scandinavian countries. FDS also exports Radiata pine woodchips to Japan.
Forestal del Sur concentrates about 25% of the Chilean woodchip exports to Japan, and given Chile’s position as third woodchip exporter to that country, FDS concentrates about 4% of the Japanese harwood woodchip market on its own.
In addition, FDS is currently exporting eucalyptus pulplogs from Uruguay to Europe, through its related company Forestal Atlantico Sur (FAS, www.fas.com.uy), which is owned 50% by Forestal del Sur.
In the last years, the main business of Forestal del Sur has been changing, from being mainly exports to also supplying the domestic Chilean market.
A relevant task carried out by the FDS Concepción area is the marketing of Radiata pine logs aimed at supplying pulp and paper industries and sawmills. The marketing consists in helping medium and small owners in the whole chain of production to hire the contractors for the harvesting and transport of their products at competitive prices and to obtain the best sales price.
Currently Forestal del Sur is looking into new business projects and sees a great potential in the biomass, a market that is expected to be fast-growing. Biomass consists in creating energy, using wood waste among other things and it is considered to be of CO2 zero emission. Given the demands of the Kyoto Protocol, which intends to regulate the CO2 emissions in developed countries, an interest for renewable energies, including biomass, has arised. FDS believes that there is a great opportunity for Chile to supply this market given the important number of hectares of forest planted and logged each year. FDS also forecasts that the biomass market is going to grow strongly.