RAW MATERIAL SOURCE

          

          For the pulp production, this mill can use the pine species: oocarpa, caribaea, maximinoii and   
          pseudostrobus and other wood species like eucalyptos or hardwood species.

          To produce 100,000 metric tons of pulp, the "El Rancho" plant requires 430,000 metric 
          Tons of pulp, the "El Rancho" plant requires 430,000 metric tons of wood annually with a minor of 30
          centimeters diameter, means 4,400 hectares of wood.      

One of the most important competitive advantages of this factory, within others, is that the Guatemala land is 51% forestry vocation, and due to the physic and climatic conditions, the pine species growing is very fast, within 8 to 12 years to get a 30 centimeter chest height diameter.

In accordance with the National Woods Institute -INAB- information in 1999, Guatemala counted with a conifers woods area of 395,136 hectares of natural woods and 20,700 hectares of voluntary (commercial) plantation, additionally, CORFINA manages the fiduciary fund Guatemala´s East and North East Forestation and Reforestation Fund¨ also known as ¨5,000 hectares fund¨, which financed about 50 pine species forestation and reforestation private projects since 1988, reaching to provide the row material to the pulp mill. Actually this project has about 5,400 wood hectares in good conditions to be processed, located at Izabal, Alta and Baja Verapáz, Zacapa, el Progreso and Guatemala departments. Additionally, there are  ¨Treasury Incentives¨ and ¨Forestry Incentives¨ Programmes grown wood, whose had 11,300 and 4,000 hectareas in may 2001, respectively.

Plus this, in accordance with COHDEFOR, actually there are 1,505,235 hectareas of pine wood in Honduras.

With 35,000 wood hectareas planting and a seven years flat cut utilization rhythm, it is enough to provide 5,000 yearly hectares, without affecting the no commercial woods.

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