Bamboo Purchase Agreement for 100% of Nicaraguan Plantations
19th April 2018
EcoPlanet Bamboo has secured an Offtake / Purchase Agreement for 100% of the bamboo yield from its Nicaraguan Plantations for a minimum 10 year period.
In a press release issued today by BAP Industries & AP&P Machinery, the Purchaser provides an overview of their intention to invest in a $60M bamboo pulp facility and associated paper mill in the vicinity of EcoPlanet's Nicaragua Plantations.
EcoPlanet Bamboo's plantations in Nicaragua have taken longer to achieve maturity than initially expected, due to a confluence of factors, in particular an under-estimation of the impacts of the extreme compaction of the degraded ex-rainforest soils, combined with the >4,000mm of rainfall and increasing occurrence of flooding experienced within the region. Further delays were experience due to the demise of the publicly traded Isle of Man Fund, the Eco Resources Fund, which in 2015 fell more than 70% short of its commitment of debt funding to these plantations.
Despite these odds, EcoPlanet Bamboo has continued to work towards the maturing of the 3,500 hecatres of bamboo plantation under its ownership in Nicaragua, while continuing to expand globally. The signing of the Bamboo Purchase Agreement is a major milestone for the company, and a step towards achieving its vision of industrializing bamboo as a viable alternative fiber for some of the world's largest timber dependent industries.
"When we started our operations in Nicaragua, we believed that the biggest impact we could have would be in the engineered timber industry" says CEO Troy Wiseman. However, after carrying out detailed market analysis, as well as increasing our land base in Nicaragua to its current scale, it became clear to EcoPlanet Bamboo that the industry in which the company could have the most significant impact in this particular region, is pulp & paper. "As a result, for the past five years we have been investing in and working towards securing an entirely clean, waste free facility, where we could be confident of being green all the way along the supply chain, from our restoration of this extremely degraded land, all the way through to supermarkets".
The Bamboo Purchase Agreement will allow EcoPlanet Bamboo to continue to expand its bamboo based model of Forest and Landscape Restoration around the world.
BAP Industries is a new, Guatemalan domiciled company created specifically for the development of global manufacturing facilities for the production of bamboo pulp. Although the Nicaraguan facility in conjunction with EcoPlanet Bamboo represents the largest of these facilities, a number of other small and micro scale bamboo pulp facilities are in the pipeline. BAP Industries combines the expertise of a group of financiers, engineers and bamboo experts, with technology and manufacturing company AP&P Machinery. AP&P Machinery, under the leadership of Chairman Fengning Li, hold title to multiple patents for the conversion of bamboo into pulp, utilizing a closed loop and zero waste system.
Read the press release here, or contact EcoPlanet Bamboo for more information at email@example.com< Back to news < Download article