Panamá has the first teak processing plant

The new teak processing plant from forest plantations is an investment of US$3.7 million.

Panama has the first high-capacity and precision teak processing plant in the region, certified in chain of custody by FSC® (Forest Stewardship Council). It has the capacity to process 1300 annual 40-foot containers to certified premium markets.

Ecotopia Teak inaugurated the plant on January 28th in the town of Chepo, with the presence of national authorities and presidents of exporting guilds such as APEX, SIP, and CONEP.

Ambassador Carmen Gisela Vergara, General Administrator of the Authority for Investment Attraction and Export Promotion PROPANAMA, stated, “This investment represents a great innovation for our country as it allows us to export products with high domestic added value, introducing knowledge and technology transfer to exported wood. It must also comply with the highest international environmental standards to open up new market sectors in Europe, Asia, and North America.”

“We participated last year with FSC® certified wood producers in the launch of the country brand ‘Panama Teak’ during Dubai WoodShow 2022, which generated orders for Panamanian participants,” highlighted Ambassador Vergara.

She concluded by saying that this year they will also participate with Panamanian companies in this fair to promote, through increased exports, job creation with knowledge and technology transfer.

Bianca Morán, Administrative Manager of Ecotopia Teak, during the inauguration of the teak export in 2023, explained that this plant allows them to reach European markets with a stabilized finished product, with precision and high quality, not just raw material.

The importance of adding value to export products, as Ecotopia Teak does, lies in the diversification of export offerings and the creation of new jobs in rural areas with a high level of training, providing well-being to the population.

Luis Frauca, President of the Union of Industrialists of Panama (SIP), emphasized, “We value this effort of innovation and investment, especially the projection of adding value to what is exported, not in raw form, as it creates greater value for exports and raises the level of technological advancement in the country.”

Similarly, Víctor Pérez, President of the Panamanian Exporters Association (APEX), stated, “It is very gratifying to see how in Panama we are evolving from exporting raw materials to exporting certified value-added products such as processed wood.”

Juan Carlos Palacios, Executive Director of the Sustainable Forest Management Corporation of Ecuador, considered that “this investment in Panama and the region is a starting point, as this company is an example not only for Central America but also for South America. It is one of the few factories that produces certified value-added wood, which reduces our dependence on markets such as Asia for selling our production.”