ArborGen and Gerdau Aços Longos S.A. Sign Eucalyptus Commercialization Agreement
November 23, 2018
RIDGEVILLE, S.C. & CAMPINAS, Brazil (BUSINESS WIRE) -- ArborGen announced that it has entered into an agreement with Gerdau that gives ArborGen exclusive rights to develop and commercialize Gerdau's genetically improved eucalyptus clones in Brazil. The partnership will expand the products ArborGen can offer its customers and allow it to expand into new markets. The company will begin offering Gerdau seedlings in November 2018.
ArborGen is one of the largest sellers of eucalyptus and pine trees seedlings in Brazil. It already has exclusive rights to commercialize International Paper's eucalyptus clones in Brazil and is developing its own proprietary clones as well. Working primarily through contract nurseries, ArborGen's eucalyptus products are already available in Mato Grosso, Mato Grosso do Sul, São Paulo and Paraná states. "This expanded agreement allows ArborGen to address important markets such as Minas Gerais and Bahia. The new clones offers growers high wood density and excellent yield, making them ideal for charcoal and energy markets," said Gabriela Monnerat, general manager of ArborGen Brazil.
The Brazilian forestry industry is one of the largest, fastest growing in the world, and Brazil is the world's largest producer and exporter of hardwood pulp. The Eucalyptus market utilizes approximately 700 million seedlings per year.