Among global leaders in sustainable tropical timber, Swiss-based company manages 600,000 hectares in Amazonas

Swiss timber company Precious Woods, a major player in the certified tropical hardwood sector, plans to double its operational area in Brazil. The company currently manages nearly 600,000 hectares of forest near Itacoatiara, in the state of Amazonas. Its operations in the country generated revenue of R$10.2 million in 2024.

To grow its footprint, Precious Woods is pursuing two strategies: signing contracts with private landowners who have forest areas near its existing base, or securing public forest concession contracts.

Operating in Brazil through its local subsidiary Mil Madeiras Preciosas, the company describes itself as the largest certified tropical sawnwood producer and exporter in the country, accounting for 6% to 7% of Brazil’s total hardwood exports.

In addition to Brazil, the company has operations in Gabon, home to its largest business unit. In 2024, Precious Woods posted net revenue of $47.7 million, down 15.3% from the previous year.

The decline was largely due to a slump in demand from the construction sector, which also hit other companies in the industry. The market began to recover in the second half of the year.

At the end of 2024, major shareholders carried out a financial restructuring by converting loans worth 43.5 million Swiss francs (around $53 million) into equity, strengthening the company’s balance sheet.

“After the capital increase in Switzerland, which wiped out almost all of our debt, we now have a solid financial base. In Brazil, that allows us to move forward with certain projects thanks to increased access to capital. We’re scaling up production to add more value to our end product,” Chairman Markus Brütsch told Valor soon upon arriving in São Paulo late last week. From the city, he traveled to Itacoatiara.

One-third of the company’s forest area in Brazil is on land it owns, acquired before restrictions on foreign ownership of land came into force.

The remainder, about 180,000 hectares, is managed through private concession agreements or contracts with the state government of Amazonas. In total, the company controls 575,000 hectares. “We want to double our operations in the Amazon, but not by starting from scratch. We’re looking for a concession adjacent to our current area,” Mr. Brütsch said.

According to the executive, the company has raised the matter with federal authorities and the state government. It has also begun talks with the Brazilian Development Bank (BNDES) regarding potential financing for new machinery, forest operations, sawmill upgrades, and sustainable forest management.

“Precious Woods operates in a sector eligible for support from the Climate Fund – Native Forests and Water Resources. A credit request, if made, could be evaluated through the bank’s usual procedures,” BNDES stated. In 2024, the bank lent R$23 million to Mil Madeiras Preciosas. BNDES has labeled reforestation and sustainable forest management as strategic activities.

Mr. Brütsch cited forecasts from the UN Food and Agriculture Organization and the World Bank pointing to rising global demand for wood, driven by population growth and the increased use of wood as a substitute for concrete to enhance CO₂ storage.

Precious Woods does not plant trees for later harvesting. Its raw material comes from native forest species, harvested under a sustainable management model. According to the company, the work is almost artisanal: teams walk deep into the forest, identify commercially viable trees, measure their diameter, and estimate their height. The data helps the company select only a handful of trees for felling during a given period. The forest management plan dictates that the same section of forest cannot be logged again for 35 years.

The Brazilian Forest Service (SFB), a federal agency under the Ministry of the Environment, currently has 1.3 million hectares of public-sector forests under concession in five states, assigned to private companies, cooperatives, and associations. Precious Woods does not yet hold any of these federal concessions. The contracts govern the sustainable extraction of timber, fruit, and plants, and may also include ecotourism services.

The species harvested by Precious Woods employees in Amazonas—such as maçaranduba, cumaru, red angelim, cedrinho, jatobá, louro itaúba, and cupiúba—are sawn and shipped to supply both domestic and, predominantly, European markets. A portion is also exported to Asia and the United States.

These woods are commonly used in water-resistant structures like bridges, as well as in outdoor furniture, flooring, and other external-use applications.

Precious Woods operates in a niche market: certified tropical hardwoods. Other major players in this segment include Swiss-based Interholco and Singapore’s CIB, both with operations in the Democratic Republic of Congo.

Precious Woods has held Forest Stewardship Council (FSC) certification since 1997 and received additional endorsement from the Programme for the Endorsement of Forest Certification (PEFC) in 2017.

According to Mr. Brütsch, sustainable forest management positions the company well in relation to the European Union’s upcoming Deforestation Regulation (EUDR), set to take effect on January 1, 2026. The regulation requires proof that certain imported commodities, including timber, have not contributed to deforestation.

Source: valorinternational.globo.com