Why would you invest in Paulownia ?

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Why would you invest in Paulownia?

would you invest in Paulownia?

  • • Paulownia is among the three (3) species of trees having the highest growth rate

  • • Paulownia can grow up to 6 meters in one one year for the youngest trees

  • • This tree is very well adapted for difficult pedoclimatic conditions and is considered as noble and very resistant in face of fungal infection attacks during its storage
Characteristics

  • • Light weight
    The paulownia is the lightest wood in the world  it is also called the « aluminium wood » The paulownia wood is one third of the oak weight and half of the pine one

  • • Resistance
    The paulownia wood has the highest ratio weight/resistance of all the tree species in the world

  • • Conductivity
    The paulownia wood is a very good insulation material An enflamating temperature of about 400ºC.

Why would you invest in Paulownia ?

  • The value of the paulownia increases over time: as long as the tree grows its saleable volume grows at a more important rate, as well as its tradable wood value
  • It is not really affected by macro-economical factors: whatever the power in place or currency or interest rate fluctuations, the long-term factors of the forest and the wood and their fundamentals produce a more low risk growth rate
  • Flexibility in the exit agenda of this investment: with a large range of options for the harvest dates, the forestry investments, including the paulownia, have a great flexibility re: exit strategies. In that respect, if the price of the wood, the paulownia in this case, went to go down during a year, there wouldn’t be any problem to wait an additional year or two, and in the meantime the value of this asset physically grows
  • Demand & supply: Global consumption of tropical hardwoods has multiplied nearly 25 times in the last 4 decades.

Economical, political and social factors

  • The social system is well developed and an ambitious educational policy has been launched. More than 5% of the GDP is allocated to the education system.
  • The social system is well developed and an ambitious educational policy has been launched. More than 5% of the GDP is allocated to the education system.
  • The political transition has been progressive and relativily peacefull (in comparison with Egypt and Lybia for instance), which has allowed the country to create globally positive environment for business.
  • The Tunisian economy can rely on a young, qualified, manpower, with rather low labour costs, very competitive.