Seeing the wood from the trees

Sport Business News

Reports that Brazil is making major inroads into its preparation for the 2016 Olympic Games have been welcomed by forestry investment firm Greenwood Management ApS.

The Denmark–based investment firm operated sustainable forest plantations in the Latin American country, which is investing heavily in improving its infrastructure ahead of the major sporting event. The International Olympic Committee (IOC) claims Rio de Janeiro is making " remarkable progress' in the preparations, with vast improvements being made to airports and other infrastructure that is vital to the smooth running of the event. One of the major markets for Greenwood Management's timber is for charcoal for the steel industry. As the work for the Olympics and the World Cup in 2014 continues, the demand for steel is rising and, therefore, the market for charcoal from non–native trees is expanding significantly. Nawal El Moutawakel, the head of the IOC's Coordination Commission, said: " Today I am happy to say that Rio 2016 and its partners have taken those words seriously and made remarkable progress. " A spokesperson for Greenwood Management said: " We are thrilled to hear that the IOC has praised the rate of progress in Rio, with regard to the development of the region's infrastructure. We predict further rises in the price and demand for charcoal from the steel industry as the investment in infrastructure continues over the coming years. " Greenwood claims that it is seeing large demand for its charcoal as the Brazilian government has recently introduced legislation to discourage the use of charcoal from native timber within the steel industry. The firm offer investors the option of buying up sections of forested land in Brazil, Canada and soon in Costa Rica. Investments in managed forestry have become popular in the wake of the financial crisis as this kind of alternative investment is not as responsive to, or dependent on, the performance of the stock markets. Therefore, risk–averse investors are turning to alternatives to ensure that some of their cash will be safe even in the event of another economic slump.

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