São Paulo – This year, Brazilian company Tree Trading already increased in 35% its exports of wood products to the Middle East and plans to reach 50% sales growth in the region until the end of the year. The information was given to ANBA via phone by the company’s president, Marco Tuoto. The exporting company is based in Curitiba, Paraná state capital, and has a office in Rio de Janeiro.
The company trades several types of wood products in Brazil and abroad, but is focused in the foreign market, where 80% of its business occurs. For the Arabs, it sells especially pine sawn wood for pallets. The product is sent to companies in the region that assemble the pallets and provide them for the oil and by-products industry. “There is a strong pallets industry in the Middle East”, says Tuoto. The Arabs also receive sawn wood, for the construction industry, and plywood from Tree Trading, especially laminated for concrete plates.
The Middle East is the second largest market for Tree Trading abroad. The company’s main buyer in the region is Saudi Arabia, followed by United Arab Emirates and Qatar in third. But sales to Qatar are much smaller compared to the other two countries, according to information from Tuoto. Besides the Arab world, the company also exports to countries and regions such as the United States, Mexico and Europe. The United States is the largest market abroad.
Tuoto says that exports to the Middle East started two years ago. The company’s executives already were familiar with the region’s market and knew of its potential for wood, according to Tree Trading’s president. Currently, four trips are taken to the region every three to six months to establish contacts personally. To keep growing in the region, Tree Trading will attend the Dubai Woodshow, a wood sector fair in the United Arab Emirates that will take place from April 4 to 6th of of next year.
Tuoto explains that the company progressively conquered important positions in the Middle East and today has a lot of credibility among its clients. “The volume numbers are very interesting, they’re growing”, says Tree Trading’s president about the demand by the Saudis for wood. He points to consumption data from the Saudi market, which should import 125,000 cubic meters of sawn wood for pallets from Brazil this year. This volume means approximately 2,600 40-foot containers of the product.
Tuoto is not sure if the goal of growing 50% in the Middle East will be achieved, but reminds that business in the sector should increase its pace starting in October. According to the executive, purchases are normally made after the Ramadan, Islamism’s holy period, which ended on July 17th this year. Usually, at this time period, the large biddings of the petrochemical sector are carried out, in which the clients of the company take part.
Tree Trading is a trading company. It doesn’t manufacture the wood, but buys it from third-parties to sell them in the local and global markets. It belongs to the holding Tree Florestal, which also has stakes in other wood sector businesses. Tree Florestal is owned by the Ático Florestal fund, of Ático Group.
Tree Trading started to operate in 2012. Tuoto says that the company was planned and founded after the analysis of some outlooks of the global market and considering some events, such as the foreign exchange rate turnaround in Brazil and the resumption of growth in the United States and Europe. Then, businesses started to take place. “We prepared ourselves for this moment”, says Tuoto. Since the start of operations, the Middle East is one of the foci of the company.
Contact
Tree Trading
Phone: + 55 (41) 3077 7599
Email: info@treetrading.com.br
*Translated by Sérgio Kakitani
