MIAMI - Amazonas Florestal, Ltd. (OTCPK: AZFL) (“Company”), a diversified forest management company, generating profit through innovative, sustainable forest management, today received its first purchase order from Productos Industriales SA (“PRINSA”) for $354,800 of Nanciton lumber.
“Whenever you can develop a market for a secondary species, it reduces pressures on existing commercial species providing for more Sustainability, helps you corner supply and puts downward pressure on the cost of that supply”
PRINSA, a well-established wood products company belonging to a decades-old group of companies in Nicaragua, specializes in products for the Mexican and Dominican markets. Through this new alliance with PRINSA, the company begins to open the strategically important Central American Corridor. This represents both a diversification of the supply chain and access into a new and growing end use market for Amazonas Florestal.
This first purchase order, for $354,800, allows the Company to begin purchasing products from several strategic mills in the region around Managua that produce products in high demand in the Mexican market.
Nanciton, is a species of wood that has in the past, been considered a secondary species with a limited market. “Whenever you can develop a market for a secondary species, it reduces pressures on existing commercial species providing for more Sustainability, helps you corner supply and puts downward pressure on the cost of that supply” says Michael Ibar, CEO of Amazonas Florestal. Furthermore the Central American tropical hardwood harvest usually extends from March to November, allowing the company to trade in wood products that are only largely available in Brazil from June to December each year.
“Most importantly this purchase order for Nanciton lumber is a significant growth opportunity for Amazonas Florestal” elaborates Ibar, “because it establishes a pipeline for us into the Mexican market, which for these tropical hardwoods, has grown over 100% in the last decade alone.”
Source: Amazonas Florestal