Strategy, business model and added value

The business model of Precious Woods is founded on the sustainable management of tropical forests in South America (Amazon) and Africa (Gabon) for the production and sale of logs and sawn timber (beams, poles, boards), planed products, and veneer made from over 60 tropical tree species.

In a sustainable, low-emission economy, wood is the building material of the future. Tropical wood offers the same high-performance properties as conventional building materials and is increasingly used as a substitute for concrete, particularly in infrastructure projects. The forestry operations of Precious Woods are FSC- and PEFC-certified. The company’s approach to production prioritizes the preservation of tree species diversity, forest structure and natural regeneration. This is achieved through careful harvesting methods, with only a small number of trees felled in rotation cycles of 25 to 35 years. Over this period, this equates to approximately two trees per football pitch-sized area.

By combining the sustainable management of tropical forests with the eco-friendly replacement of conventional building materials, the business model of Precious Woods provides investors with the opportunity to make a responsible and sustainable investment.

Precious Woods is structured into the segments Amazon, Gabon, Trading and Carbon & Energy, along with Group Management. Group Management focuses on achieving strategic objectives, sales, marketing and communication, and finance, while the Amazon and Gabon business units produce tropical timber and semi-finished products. The Trading unit manages the trade of logs and sawn timber from Africa and Europe. Carbon & Energy produces biomass from wood residues, which is used to generate renewable energy. Precious Woods utilizes this biomass for energy production at its manufacturing sites and other purposes. Additionally, this unit will in future sell carbon credits derived from the CO₂ sequestration of its forests.

The key markets of Precious Woods for timber and semi-finished products include shipbuilding and hydraulic engineering, gardening, building and road construction, door and window manufacturers, and outdoor furniture manufacturers.

Non-governmental organizations (NGOs) are key partners in the Precious Woods business model. Their regular information campaigns help raise awareness of the vital role tropical forests play in carbon storage and biodiversity conservation. In doing so, they influence the regulatory framework in forestry, benefiting Precious Woods as a consistently sustainable market player.