Phaunos Timber Fund Ltd has announced the establishment of a wholly owed subsidiary company to allow it greater access to the Uruguayan forestry sector.
Montevideo-based Caldrey SA will provide harvesting and road building services to forestry owners and operators in Uruguay, with Guernsey-based Phaunos investing US$7m to purchase equipment and help establish the operation.
“Phaunos is very pleased with the prospects for this investment,” said Keith Oates, chairman of Phaunos’ board of directors.
“It is a first step in what we hope will be a long and important part of our business strategy in Uruguay.”
Phaunos said that establishing Caldrey will give the company “access to further timberland investment opportunities in Uruguay”, adding that Fanerey SA, Phaunos’ Uruguayan partner in Caldrey, “is already in contract negotiations…with several major players in Uruguayan forestry”.
