MEXICO – Sales in the 4Q-2018 of Proteak, a leading Mexican manufacturer of MDF wood panels and teak wood products, reached MXN 312 million, 50 percent more than in 4Q-2017 and 6 percent more than the 3Q of 2018.

In the MDF segment, marketed under the Tecnotabla brand, quarterly revenues totaled MXN 285 million, an increase of 47 percent compared to the fourth quarter of 2017. This performance was achieved as a result of the significant increase in the average price per cubic meter due to to direct prices, and to the accelerated growth of exports to the USA and of the sale of value-added products.

In the U.S. market, Tecnotabla sales continued to grow and reached MXN 41 million in 4Q-2018, representing 14 percent of total quarterly sales and consistent with Tecnotabla’s US market development plans. In the domestic market, the Company maintained its leadership despite the constant pressure from imports, which continue to lose share compared to national production.

The Mexican MDF market is still developing and during the fourth quarter of 2018 reached a new historical record. This was mainly due to the growth of local production – by Tecnotabla, Masisa and Duraplay – which continues to gain ground against imports. At the end of the fourth quarter of 2018, domestic production represented 56% of total consumption in a market that grew by 9.8% during 2018 (vs. 2017), reaching 870,000 m3.

Tecnotabla has played an important role in this transition. Sales volume during the fourth quarter of 2018 increased by 25% compared to the fourth quarter of 2017. As a result, it maintained the leading position with an estimated market share of 22%, supported mainly by the production of high-grade quality boards and the focus on value-added products.

To expand the value-added market, Tecnotabla has been participating in events that promote the use of these products, both in commercial conventions and in one on one meetings with customers.

Regarding Proteak’s teak business, quarterly sales were 82% higher than in 4Q-2017. This is the result of sales of mature teak wood from Mexico and Costa Rica and the growth of the TeakHaus board business.