MEXICO – In the first quarter of 2019, the Mexican MDF manufacturer,Tecnotabla,achieved its fourth consecutive quarter with a record sales in boards, reaching sales in the period of MXN 295,000,000, a 40% growth in the first quarter of 2018.

During the period The company also reports a new maximum in sales of value-added products. This result is a reflection of the combination of a 22% increase in volume and a clear improvement in commercial management. In turn, this growth has positioned Tecnotabla as the leading MDF board brand in the Mexican market, with an estimated participation of 24%.

In the United States, the brand continues to develop with a positive trend, also achieving a sales record in the quarter, growing 41% against the first quarter of the prior year.

In the first quarter of 2019, production was 30% higher than the first quarter 2018 production and in line with expectations.

The plant, located in Huimanguillo, Tabasco is the most modern in Latin America. With an investment of USD 200 million, it is the most important forestry-industrial project in the history of Mexico. It has a production capacity of 260,000 m3 and is 100% sustainable thanks to the guaranteed supply of certified wood from its own eucalyptus plantations. The plant has the latest German technology and also includes the efficient cogeneration of energy based on natural gas and biomass as well as the manufacture of resins, guaranteeing the best quality and sustainability of the boards. These elements reinforce the strategy of producing high quality boards, the focus on value-added products and outstanding customer service.

Tecnotabla is part of the Proteak Group, the largest forest-industrial company in Mexico and Central America and ranks third worldwide as a Teak producer. With 18,500 hectares of plantations in Mexico, Costa Rica and Colombia, it exports its products to more than 15 destinations in America, Europe and Asia. It is a 100% self-sustaining company, even in terms of energy production. Certified under international standards, Proteak develops all of its plantations in strict adherence to the Forest Stewardship Council® (FSC) guidelines.

Another good news for Proteak was the non-binding letter of intent received in April from Conti Street Partners to invest in a joint venture, which seeks to develop a portfolio of commercial Teak forest plantations.

Should this vigorous proposal materialize, Proteak would provide part of its land and biological assets, some 1,800 hectares of Teak plantations, equivalent to approximately one third of its plantations valued between 47 and 52 million dollars while the investor will make a contribution in cash for up to 80 million dollars. The new resources will have as main objective to maintain the existing plantations of the joint business and promote the development of up to 4,000 hectares of new plantations of high productivity in Mexico. The company considers that the assigned value of the plantations to be contributed is in line with the independent valuations of said assets. Additionally, it estimates that said value would imply a valuation of between 200 and 230 million dollars for all of its Teca assets. Currently Proteak is conducting a preliminary analysis of the proposal which would be carried out under the figure of a joint venture.