SA Paulownia Investment Co. (Pty) Ltd

P O Box 586 Gallo Manor, 2052

 

 

Tel : (011) 802-1167

Fax : (011) 802-7060

Fax to email: 0866 724 456

 (confidential)

 
THE PAULOWNIA TREE
 

                                      


Basic business economics makes it clear that the most desirable place to be is in the middle between a long term decreasing supply, and a steadily increasing demand.  The Paulownia Plantation Program is the easiest way to enter the world lumber market as a producer/supplier without purchasing a forest or waiting 30 to 40 years.  To be among those who plant Paulownia as an Agro-forester/Investor means you will be able to market the lumber quickly while receiving high prices for your product.  Waiting for forests to naturally regenerate takes far too long, and is not economically feasible.  To speed things up, various methods of reforestation are employed (propagating and re-planting harvested forest regions). These practices have shortened the re-growth of a forest region; nonetheless, it still requires 35 to 45 years.  To further shorten the time from germination to harvest, scientists have helped to develop faster growing pine varieties. However, this method still takes 20 to 30 years, depending on all the variables (soils, climate, cultural practices, etc.).  To date, the fastest, most effective method for growing wood bearing trees is agro-forestry.  This is the planting of wood producing trees on tree farms or orchard-type plantations.  Among the fastest growing, wood producing trees in the world are various species of Eucalyptus, poplar and Paulownia.  

The Eucalyptus wood is primarily used for cellulose and firewood.  Poplar wood is used as a low cost wood for doors, windows and moulding.  Paulownia is the highest quality of the fast growers (there are also slow growth species of the Paulownia). Of course, as with any wood, the older the wood at harvest the higher the quality (more "character" to the wood) and the higher the price. The fastest return on quality timber is with well-managed Paulownia plantations; the Paulownia tree is suitable for logging after four to five years.   More than thirty years have been spent researching the viability of growing Paulownia around the world and are having excellent results.


 

The Paulownia could be considered the ultimate environmental tree:  

 

1.       Each tree removes 22 kgs. of carbon dioxide per year.  (55 000 kgs. per hectare per year)  

2.       Each tree releases about 6 kgs. of oxygen per day.       (15 000 kgs. per hectare per day)

3.       Each hectare of trees will scrub 32 tons of harmful CO2, gases and dust from the air per year.  

4.       Each tree can absorb 91 litres of wastewater per day.  (227 500  litres per hectare per day)


In addition:

·          The Paulownia is more environmentally friendly than other plantation timbers because it re-grows from the stump and does not leave the soil leached of nutrients.  As a percentage of the plantation is logged it regrows very fast, up to 4.3 meters in one year so the land continues to look attractive.

 

·          The Paulownia has a long taproot and very few surface roots and it actually brings nutrients to the surface. Added to this the paulownia leaf is highly nutritious making excellent stock food or mulch if left on the plantation floor.

 

·          The Paulownia has also proven to be tolerant of effluent and higher levels of salinity than most trees.  In China and regions of the US it has also proven to deal with water and soil pollution better than any other tree.  It has shown remarkable abilities when used for phytoremediation. 

 

·          Paulownia, originally from China, can produce a butt log of millable quality hardwood timber within four to six years.  This compares with a minimum of 18-20 years for other hardwoods.

 

·          The timber is comparable in quality to Western Red Cedar, Meranti and Obecchi. It has a high strength to weight ratio, is light in weight and color and is suitable for furniture, boat and caravan outfitting, shop fittings, office interiors, blinds and moldings.

        The Paulownia also has fire retardant qualities because it does not contain volatile oils like most other trees so it is less vulnerable to forest fires. In recent         experiments white ants would not eat Paulownia when they have decimated other timbers.

 

·          Gentle on the earth, few surface roots, long taproot that helps to lower water table and prevent salinity.  A very clean tree, no berries, no sap drop, drops its leaves in autumn and they disintegrate within a few days. 

 

·          Public Health Benefit - CSIRO studies confirm eucalyptus react with pollution causing problems for asthma sufferers.  Paulownia absorbs more pollution and has a very low pollen count.


 

Increasing Demand for Timber:

Mankind has always and will always have an insatiable appetite for wood and wood products.


o         Population growth: Along with the simple fact of the steadily increasing human population, there is a concomitant increase in the need for wood (wood for heat, cooking fuel, shelter, furniture, tools, art supplies, and musical instruments, as well as for construction related wood products.)

o         Related products: Wood is needed in the production of various products such as rubber, resins, quinine, turpentine and cellulose. As more wood-dependent products are developed, the demand will increase.

o         Paper-related products: As commerce steadily increases so does the need for more shipping containers, usually made of cardboard. While recycling satisfies part of the need, it can not keep up with the demand. With the advent of the personal computer with printer and FAX, using reams of paper is no longer considered excessive, but rather is now a basic home necessity (to be used for the children's homework and the family business)


The Reality of Diminishing Supply: 

 

The supply of lumber and the raw material for wood and paper-related products is forever dwindling.  It has been estimated that 95% of the first-growth forests in the United States have been cut in the last 100 years. 

 

Supplies will continue to erode as a result of:


1.       Human consumption: Tropical forests are being destroyed at alarming rates.

2.       Clearing and burning for grazing land.

3.       Commercial lumber harvesting.

4.       Natural disasters such as fires and floods ravage hundreds of thousands of acres every year. Most of these activities cause serious erosion and loss of topsoil.

5.       Government regulations: In an effort to protect endangered plant and animal species and to comply with the pressures of public opinion, more and more forestlands are being taken out of production by government mandates.

6.       Private and government acquisition.

7.       Very slow replacement time.


 

With most commodities, when the demand goes up, producers simply plant more acreage of corn or wheat or the oil companies pump more oil. With these examples, and with most commodities, the "turn around time" is a matter of months. In the lumber business, the turn around time from planting to harvesting is usually a matter of decades.  

Additional Characteristics & Advantages:


o         The Paulownia can be coppiced (harvest the tree by cutting it off near ground level and another tree will begin to grow from the same root system). This can be done several times (4 to 6 times) during the life of the tree.

o         Intercropping. Because Paulownia has a vertical root system, growers can plant annuals between the rows of trees for diversified income if desired.

o         The wood is a lightweight hardwood, straight-grained, free of knots, very stable, light in color, easy to work (mill, sand, carve, etc.), and very easy to dry and with less drying defects.

o         In autumn, the fallen leaves can be used as nutrient-rich stock feed, or as a component of high-grade compost to enrich the soil.

o         The large surface area of the Paulownia’s broad leaves take-in correspondingly large amounts of carbon dioxide and gives out correspondingly large amounts of oxygen.

o         The ornamental beauty of the Paulownia is displayed in its cascades of blue to pink shades of blossoms (depending on the species) for 4 to 6 weeks during spring, and these flowers produce excellent honey.

o         Water sensitive roots will not invade sewer or water pipes.

o         Can be used for furniture, veneer, boxes for shipping, particleboard, doors & windows, musical instruments, picture frames, toys, fishing net floats, and for shoes.

o         The wood is also very stable in wet/humid environments, and is highly durable and decay resistant.


 

 

 

Add another dimension to your Investment Portfolio-

THE FUTURE.

This is an exceptional investment opportunity!

By investing in FORESTRY, you can invest in the FUTURE.