Veneer production
The merger of the activities of TGI and PDG took place because both were too small on their own to meet the high demands of the European market. Precious Woods’ core competence lies in sustainable forestry and the initial processing of logs in sawmills. The strengths of the French partner lie in the production of veneer and plywood panels. Operations are currently still being carried out in the existing mills. In a further step, the activities are to be merged at the site of the former TGI.
Logs are supplied almost entirely by Precious Woods Gabon. CEB sold a total of about 75 600 m3 of logs to customers in the local market, with CPL accounting for about 65 000 m3 or 86 %. Initial investments to increase productivity and the changes to the production and order mix have already had an impact on yield. Yield at TGI was 51 %, but it has increased to over 60 % since October 2021. Despite lower average prices, there was a positive overall effect.
Sales from veneer production are generated exclusively by Precious Woods Holding Ltd. As explained in the chapter on PW Gabon, this resulted in an increase in sales at PW Gabon. Sales from the delivery of logs to CPL are not shown in this segment because of the consolidation.
Log processing in 2021 was 59 163 m3 and veneer production was 34 634 m3.