CEO sells $30 million sawmill and laminate wood flooring factories for $1

The company plans to dry wood in-transit using the company's Co-Tech solution.

The CEO of a company that plans to ship wood from Africa to the United States and use a patent-pending CO-Tech system to dry the lumber in route has sold his sawmill and laminate wood flooring facilities, valued at $30 million, for $1.

Caravelle International Group, a global ocean technology company, announced that the Company's CEO Dr. Guohua Zhang has sold Penxing Gabon SARL to Caravelle. 

Penxing Gabon SARL owns and operates a sawmill and laminate wood flooring manufacturing facilities in Gabon, Africa, capable of producing 100,000 cubic meters of sawn timber and 2.5 million square meters of wood flooring per year. Penxing also owns the logging rights to 340,000 hectares of forest land in Gabon. A recent appraisal of Penxing Gabon SARL valued the company at $30 million.

This acquisition completes the supply chain for the Company's recently announced expansion into exporting wood products directly to the U.S. market, with added cost savings from drying the wood in-transit using the Company's revolutionary Co-Tech solution and the duty-free status granted under The African Growth and Opportunity Act making the market opportunity even more attractive. When operating at full capacity, the Company estimates that the Penxing manufacturing facilities could produce $150 million worth of laminating flooring and other wood products which would generate $30 million in profit.

"It gives me great pleasure to announce the gifting of my $30 million company to Caravelle. This decision was made as a symbol of my commitment to building value for all shareholders myself included as the largest and majority shareholder, and to ensure the long-term success of our company," said Dr. Guohua Zhang, Chief Executive Officer of Caravelle. "Penxing Gabon SARL is much more valuable as a part of Caravelle than it was on its own as it vertically integrates the Company all the way from timber harvesting to the sale of finished laminate flooring and wood products in the United States, Asia and Europe. This is a multi-billion market opportunity and as a vertically integrated company we will capture much more profit."


Have something to say? Share your thoughts with us in the comments below.

Profile picture for user larryadams
About the author
Larry Adams | Editor

Larry Adams is a Chicago-based writer and editor who writes about how things get done. A former wire service and community newspaper reporter, Larry is an award-winning writer with more than three decades of experience. In addition to writing about woodworking, he has covered science, metrology, metalworking, industrial design, quality control, imaging, Swiss and micromanufacturing . He was previously a Tabbie Award winner for his coverage of nano-based coatings technology for the automotive industry. Larry volunteers for the historic preservation group, the Kalo Foundation/Ianelli Studios, and the science-based group, Chicago Council on Science and Technology (C2ST).