Using a unique tissue-cloning technique developed over several years
and is protected under "Trade-Secrets" has created the world’s
fastest growing hardwood tree, the enhanced Paulownia Tree.
After harvesting each tree re-grows from its stump reaching
heights of up to 30 feet in one year, and can be harvested
again in approximately 5-6 additional years thereby providing
marketable yields for years to come.
Mature trees are suitable for harvesting in 3 to 5 years from
planting for hardwood timber or as early as one year for pulping
purposes. Large returns are provided due to the high price paid
for each cubic meter of timber. The timber is light, has good
grain and is very attractive, is extremely strong, and is
resistant to rot, warp, twist or split and also fire. The
Paulownia Tree grows up to between 60-80 ft in only 5 years.
HIGHLIGHTS
- HIGH GRADE VALUABLE TIMBER WITH MANY VARIED USES
- WORLD’S FASTEST GROWING HARDWOOD TREE
- LEADING EDGE CLONAL TECHNOLOGY PROTECTED BY "TRADE-SECRETS" RESULTING IN DISEASE-FREE CLONES
- TREE REGROWS FROM THE STUMP AFTER HARVEST
- TIMBER PRODUCED CAN BE EASILY SOLD INTO THE MASSIVE INTERNATIONAL MARKET FOR LUMBER.
- HIGHER THAN NORMAL RETURNS ON INVESTMENT AN ENVIRONMENTALLY RESPONSIBLE
The Paulownia Tree re-grows from the stump after harvesting and
represents an economically viable means of meeting growing world
timber demands in a time of dwindling supply and of providing an
efficient reclamation program to restore denuded and misused lands
throughout the world.
The cloning of the Paulownia tree is a result of years of research
and development. ETF owns the rights to utilize superior clone
tissue to plant, grow, develop, market and distribute this highly
valuable tree on a global basis.
The Paulownia Tree is a deciduous hardwood tree capable of
growing as much as 30 feet in the first year and providing
marketable timber in as little as two years.
International demand for wood products (pulp, lumber, hardwood,
plywood and veneer) is outstripping world supply. The United
States alone annually consumes some 220 million cubic meters
of plywood and veneer and 188 million cubic meters of hardwood.
The U.S.A. demand for wood products is currently growing at
2% per year. (Source: United States Department of Commerce).
Australia with a population of only 17 million, imports
$2.4 billion of wood products annually. This seriously
impacts on the balance of trade of Australia. By producing
hardwood supplies it, countries like Australia can benefit
its current account deficit by decreasing the demand for
imports, and increasing exports through the production of
value added lumber and other timber products.
Existing land reclamation, recycling and conservation programs
are inadequate in terms of time required and expenses involved.
By blending nature and genetic engineering, ETF technologies
offers the Paulownia Tree as a viable means of coping with
what is rapidly becoming an ecological crisis of global
proportion.
The natural attributes of the Paulownia operate to produce a rapid
growth tree, which produces superior quality timber in a fraction
of the time (3-5 yrs vs. 40 years) required by more traditional
sources such as oak or ash. These attributes, enhanced by the
best available clone technology, provide ETF with a
revenue-producing product to meet the growing demand for
timber in several stages including:
- Small tree clones; effective immediately,
- Pulpwood and landscaping timber; 1.5 to 2 year range,
- Hardwood and fine furniture, wood wool or products; 3 years and up.
Where Paulownia Tree is grown for timber a planting density of
200 trees per acre is the recommended spacing and this is roughly
every 12 feet between trees and 20 feet between rows. However for
pulping purposes up to 600 trees per acre may be planted out.
The timber is fire resistant, extremely light in both color and
weight yet very strong, dries easily without a kiln, has a
beautiful grain, and stains well, does not warp, split or crack,
or deform or rot easily. The wood is easy to work with, and
suitable for carving and has excellent insulation properties
and stains to almost any color. In Japan and internationally it
provides beautiful wood for the manufacture of fine furniture
(including kimono drawers), plywood, laminated beams, musical
instruments (i.e. harps) and is ideal for boats. Its growth
traits make it an ideal candidate for land reclamation and
reforestation projects throughout the world. The Paulownia Tree
produces a superior timber, which is a perfect replacement for
Rainforest timbers, which are being logged from our Rainforests
through the world at an alarming rate. The Paulownia Tree can
totally replace the demand for this and most other sacred timbers.
The leaves and flowers of the Paulownia are rich in nitrogen and
therefore serve as good fertilizer and fodder.
The flowers are colorful and beautiful in spring and the trees
are green and shady in summer. The Paulownia Tree is therefore
very suitable for beautifying and enriching the environment
and for forestation purposes. The Paulownia Tree can also
be used for reclamation of mined areas.
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ENVIRONMENTAL IMPACT
The methodical decimation of huge tracts of rain forests
(75,000 acres per day) and the misuse and abuse of timbered lands
on a global scale are having disastrous effects on the planet's
ecosystem. The widely document phenomena of the "Greenhouse
Effect", "Global Warming" and the "Hole in the Ozone Layer"
presents society with the mandate to adopt more environmentally
aware methods of producing goods.
Tropical rain forests represented 15% of the earth's surface
in 1950. By 1975, this had reduced to 12% and experts predict
that this critical ecological component will drop to 7% by the
year 2000.
The technology embodied in the development of the Paulownia Tree
represents an environmentally effective direction for the survival
of world timber supplies and the reclamation of defoliated and
degraded land areas.
The clone tissue is disease-free and produces a tree capable of
growing up to 30 feet in its first year or up to 35 feet in its
first year after initial harvest. Young Paulownia trees have large
deciduous leaves, which provide ground cover and form mulch,
which improves, rather than depletes, the soil nutrients; thus
removing or reducing the need for chemical fertilizers. The
root system is deep and non-invasive, thereby lowering the water
table and reducing the danger of soil salinity.
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CHARACTERISTICS OF THE Paulownia Tree
- The naturally rapid growth rate is accelerated by unique clone
technology, creating a tree, which matures quickly and provides
early financial returns.
- The tree weighs a lot less than traditional commercial lumber
thereby reducing shipping and harvesting costs.
- The tree is easy to work and possesses a satiny finish,
making it an ideal material for fine furniture and musical
instruments and ornamental objects.
- The Tree represents a solution to the world timber supply
problem in the form of an income-producing and renewable natural
resource.
- Due to rapid growth rate, harvested trees can re-grow very
quickly, resulting in no loss to forested lands or the ecosystem.
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SYNOPSIS OF THE Paulownia TREE
Paulownia Tree belongs to a group of trees classified as
"hardwood". It is deciduous (tree which sheds its leaves
every season). Under certain conditions Paulownia Trees can
grow up to 55 cm diameter and to a height of up to 15 - 20 meters
in 3 to 5 years. A 7-year-old tree could yield up to 1.5 cubic
meters of timber or more.
Paulownia Tree is very adaptable and extremely fast growing
compared to most traditional hardwood and softwood species.
Typically the growth cycle of Oak (hardwood in North America)
is in the range of 60 - 80 years and that of softwood such as
Douglas fir is about 75-85 years. Paulownia Tree can be routinely
harvested in 3-5 years to provide wood of suitable quality for
many applications.
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WOOD PROPERTIES:
Paulownia Tree timber has a number of unique qualities and characteristics
that make it highly desirable and suitable for use in a wide range
of applications. It is light and strong and can be easily worked.
It is highly resistant against warping, shrinking and splitting.
Paulownia tree is less than 2/3 the weight of common commercial
wood in the U.S. A cubic foot weight about 14-18 pounds v 25-30
pounds for Fir. Although its strength is far superior,
"Paulownia tree" wood is often compared to Balsa wood -
like Balsa, Paulownia tree is light, but unlike Balsawood,
Paulownia tree is so strong that it will not split when nails,
staples or spikes are driven into it even close to the end.
Paulownia Tree wood, even the youngest and the greenest
harvested at 2 years, will not split or crack when dried rapidly -
another valuable feature and one unique to "Paulownia tree".
The timber is ideal for Veneer, and the young tree can be used
for pulp and paper.
Board made from Paulownia Tree has an attractive grain pattern
and has a high sheen when polished. These characteristics are
highly prized in furniture and other fine wood applications in
many parts of Asia, Particularly in Japan.
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ECOLOGICAL IMPACT
The many components of Paulownia tree play an important role in
the ecological cycle. For example the leaves and flowers of Paulownia
tree are high in nitrogen and therefore serve as good fertilizer for
plants and fodder for farm animals. The flowers are a good source
of pollen and nectar suitable for apiaries, honey production. The
leaves of the tree are green and large, providing good shade in
the summer and, the flowers are colorful, making the commercial
planting of Paulownia tree not only useful as a source of timber
but also suitable for beautifying and enriching the environment
and for forestation purposes. They are also equally suitable for
landscaping of urban and industrial areas. Paulownia tree can also
be used for reclamation of mined areas.
Everyday, tens of thousands of acres of tropical forests are
decimated; either burned for open areas for domestic farming or
clear-cut for commercial timber. This depletion of the tropical
forest has a dramatic effect on the oxygen-carbon dioxide balance
in the atmosphere and on the preservation of animals, insects, and
plant species, which depend on the forest to survive.
Substantial efforts have been initiated to slow the decimation of
these forests by improving the management of natural forests and
by increasing the yield of commercial forests. There are problems
associated with most of the commercial forests in that the trees
have long growth cycles and low timber volume. The long growth
cycle of the trees allows animals to establish habitats and at
harvest time, the habitats may be sufficiently disturbed to
threaten their survival. The low timber volume translates to a
requirement for large tracts of land to yield sufficient volume
of timber for economic viability. These two drawbacks of current
commercial forests make Paulownia tree a very attractive alternative
for commercial plantations.
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CLIMATIC REQUIREMENTS
The Paulownia tree adapts easily to a wide range of climatic conditions.
It grows well in tropical climates with abundant sunshine and rainfall.
It has also grown in regions as far north as 40 degrees latitude in the
northern hemisphere with as little rainfall as 20 inches per year.
In general, Paulownia tree grows well on sandy and clay soils -
heavy earth. But because it adapts so easily, it can grow just as
quickly as a wide variety of soils. For instance, in Japan it can
grow well in rich soil in the temperate zone as well as in the dry
poor soil of the north central plain; in the rich forest soil of the
subtropics; and in the laterite of the southern tropical region.
Paulownia tree can also adapt to a wide range of temperatures.
In Japan Paulownia is commonly found in regions where the maximum
temperature is 38-40 degree C and a minimum temperature of -10
to -5 degree C, with a mean temperature of 15-20 degree C during
the year. In other words, the Paulownia tree tolerates high and
low temperatures very well.
The Paulownia Tree requires well drained flood free soils at
elevations from sea level to over 6,500 ft and to reach their
optimum require temperatures in the range of approx. 14c - 40c.
The natural growing area climates have temperature ranges as
diverse as winter averages of -5c to regular summer days of
over 35c.
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LATEST PROJECTED GROWTH COMPARISONS: (measured in meters)
OUR Paulownia TREE - VERSES - ORIGINAL
YEARS
3-5yrs
10
14
Butt Length - 3-5yrs
10
14
|
HEIGHT - OUR TREE
20
25
30
8
12
15
|
NATURAL TREE Approx.
6- 8.5 mtr
10
16
3
4
4.5
|
YEARS
Volume per tree 3-5yrs
(Cubic meters)10
14
|
VOLUME OUR TREE
0.45 -1cu.mtrs
1-2
2-5
|
VOLUME NATURAL
0.2
0.3
0.45
|
Note: Figures for Years 10 and 14 Paulownia tree estimated.
Clones will be propagated by our proprietary tissue culture technique.
Each of ETF’s laboratories will be constructed with a minimum
production capacity of approximately 1 million trees per month.
This can be greatly increased over the next 5 years. More properties
are being allocated to plant a big part of the ensuing years’
productions. It has been planned that part of the laboratory
stock (tissue culture) may be shipped, consolidating the company
cash flow, to anywhere in the world due to high demand
internationally, especially from South East Asia, Africa,
USA and South America.
Once the tissue cultures arrive on site, they are deflasked and potted
in a hot house (not necessary if in tropical climate) for transplanting
in the field. This stage takes about 4-6 weeks. The initial planting
into pot is to allow the plant to make the transition from tissue
culture media to the soil and to encourage natural growth development
for planting in the sapling plantation.
Plants are then placed into the sapling plantation; this plantation is
an intensive horticultural area where skilled nursery personnel tend
the plants for the first growing season. In this plantation plants
are planted close together to accelerate the growth of trees to reach
up to 30 feet in the first year, depending on local weather and soil
conditions
Once planted in the open field, the young trees will be irrigated
where rainfall is insufficient (less than 20 inches per year) and
fertilized throughout the first year of growth. For optimal growth,
the trees will be pruned in the first two years. Thereafter the trees
require minimum care until harvest.
In Australia 3 year old timber has been utilized to manufacture a
beautiful briefcase. Lumber or boards or pulp, from as young as
2.5 years or wood chip from 1 year The wood can either be kiln
dried or not and does not exhibit any cracks, warps or splits.
This is highly unusual for young timber.
The Paulownia tree wood pulps very well with conventional pulping
techniques. An independent consultant on samples of the fast growing
Paulownia tree has confirmed this. The fiber length is approximately
1,700 microns.
The successful development of the clones and the proprietary tissue
culture techniques make it technically feasible for commercial tree
farming. The high-grade wood resulting from the cloned trees and the
market price for the wood provide high return for farms based on
the technology available through ETF Inc.
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COMPETITION
Much attention has been focused on the selective breeding of fast
growing softwood (evergreen) trees. Traditionally, soft woods such as
Douglas fir, Hemlock and Pinus have been used in housing construction.
These trees have a growth cycle of well over 70 to 80 years. The
fastest growing species in the softwood category is the Radiata pine,
grown mostly in South America. In Chile, substantial investments have
been made in Radiata pine, which has a growth cycle of approximately
25-30 years. To date there are a number of commercial tree farms in
South America growing Radiata pine.
In the hard wood category, Eucalyptus, Cottonwood and Poplar have been
considered as feedstock and for pulp mills. These trees have relatively
fast growth - in the range of 10-15 years, for use in the pulp industry.
However, the timber qualities such as: grain pattern, strength,
drying characteristics, has made these species unsuitable for use
as lumber.
In addition to the competitive challenges other "fast grown" trees
may represent in the future, Paulownia Tree faces little competition
in today’s market place except from traditional hardwoods such as Oak,
Maple, Poplar, Ash or Beech, and all take much longer to grow to maturity.
In the United States, for example, few hardwood users have been
exposed to Paulownia tree because in the past the scarcity of a
readily available supply has prevented them from considering it as
an economically viable alternative. However, given dependable and
consistent source of supply and subsequent decrease in price, hardwood
users will find to be very competitive in the hardwood applications
such as window moldings, doors and furniture. No other hardwood offers
the combination of lightweight and strength and durability that
Paulownia tree does.
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THE MARKETS
There are four potential markets for Paulownia tree wood.
- The Japanese market
- Hardwood lumbers and logs
- Pulp products or Fine Furniture
- Plywood and Veneer
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PULP PRODUCTS
There is continuous shortage of supply for pulping. This is in part due
to the ever-increasing demand for paper products. But of critical
importance is the dwindling source of supply of pulp logs due to
environmental considerations and preservation of animal habitats.
According to the latest statistics available from the U.S. Dept.
of Commerce, in 1988, 207 million cubic meters of pulp products
were consumed in the U.S. This figure reflects a trend of an average
annual increase of 2.2% over 18 years. Using the same rate of increase,
the projected consumption by the year 2000 will be 270 million cubic
meters, representing an increase of 63.4 million cubic meters from
1988.
Samples of Paulownia tree wood have been successfully pulped and
proven to provide good fibre content. ETF Inc. plans to aggressively
market the second grade timber to the pulp industry. With a 3-5 year
crop rotation, it is estimated that 25% of the overall timber harvest
could be profitably sold as pulp logs at competitive prices.
TOTAL: A PROJECTED 1% PENETRATION INTO EACH OF THE ABOVE MARKETS IS
ESTIMATED TO BE VALUED AT APPROXIMATELY $1.483 BILLION.
The projected revenues from the first 5,000 acre plantation are
estimated at approximately $308 million gross over a period of some
5 years and in excess of 2.5 billion in 10 years ETF will be involved
in the marketing and licensing of the technology to governments,
major corporations and other investors all over the world in a
number of options, as follows:
- The direct sale of tissue cultured seedlings to organizations
wishing to plant Paulownia tree plantations for their own processing
and or Forestry requirements. This would be encouraged under joint venture
arrangements.
ETF. Inc. would be required to be retained as the technical consultants
to the project.
- The joint venturing of major plantation projects with Government,
corporations or investors who wish to establish such projects.
- The Planting and Management of Investment Forests for Investors
such as Pension Funds, Trusts, Corporate investors interested in
diversification of investment funds, or for Corporate and Government
Authorities interested in land regeneration and reclamation programs.
To reach the target markets for Paulownia trees, we will direct
sufficient investment to develop the markets, which are not already
in existence. For example, to gain acceptance of Paulownia trees in
carpentry applications, we will sponsor research to establish, through
traditional industry channels, the technical specifications requisite
for these applications. Another example is the proposed penetration
into the pulp market. Here, ETF Inc. will collaborate with leading
pulp mill operators to establish the technical and economic viability
of Paulownia tree in pulp.
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Paulownia TREE FOR PULP PLANTATIONS
In the case of plantations being developed for purely pulp reduction
they would require the development of a different of infrastructure
associated with typical timber production plantations. A pulp plantation
would require the availability of large quantities of water from either
irrigation from rivers or underground sources of high rainfall of viz.
48 inches plus per annum.
The planting of the trees would be done under a more intensive grouping
than that of the timber production plantation which has 200 trees to
the acre, we would expect to be able to plant 600 trees to the acre as
these trees will be harvested in cycles of 2 years providing high
volume supply schedules to pulp mills. These plantations will be able
to be coppice grown for at least 5 re-growth cycles before the plantation
would require replanting with new clone stocks.
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