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PROJECT INFORMATION
MARKET
INVESTMENT
• The plant’s production will be earmarked for exportation. The
Commercial forest:
global pulp market is 50MM TM with annual growth between 1
800 MM USD
and 2%; Europe and China are the main consumers
Pulp Plant: 1,400 MM USD
• Pulp importers: China 36%, Germany 8%, USA 7%, Italy 5%
Total: 2,200 MM USD
• Paper and cardboard importers: USA 11%, Germany 8%, UK 5%,
France 5% Leading country: Brazil leads short fiber (Eucalyptus)
production.
FINANCIAL INDICATORS
Demand:
• IRR Forest: 11.28%
• Regional trade balance: 2.9 billion USD. Wood pulp is the
• IRR Plant: 10.43%
product of greater export; and wrapping paper and cardboard
• Recovery time: 10 years
are the products mostly imported.
MANAGEMENT MODEL
• Reduction of 10% on the Income Tax rate on the
Private investment: the investor builds the plant and amount reinvested in productive assets
develops the forest for production inputs. • Exemption of Income Tax for 10 years for Basic
Industries
Benefits for the investor
Through the signing of an investment agreement
with the Ecuadorian government, recorded as a OBJECTIVE
public deed, reception of benefits are guaranteed.
• Stability on tax incentives up to 15 years, renewable Implement a pulp production plant 1MM TM/year
once (maximum validity 30 years) BHKP (Bleached Hardwood Kraft Pulp), from the tree
• The company may request total or partial species EUCALIPTUS UROGRANDIS through the
reduction of tariffs for any capital goods imported development of a commercial forest to supply the
• Exemption of foreign exchange taxes on financing raw material to the pulp plant, while it has a
operations potential exporter to Europe and Asia, to supply for
• Establishes conflict resolution mechanisms the domestic, regional and global market.
PROJECT DETAILS
The purpose is to promote the implementation of an industrial plant for the production of BHKP type pulp
(short fiber); this project is comprised of two components: the commercial forest that supplies raw material to
the pulp plant.
LOCATION
REGULATORY FRAMEWORK