ABOUT TEAK

Teak (Tectona grandis) is one of the world’s premier hardwoods, rightly famed for its mellow colour, fine grain and durability. It grows naturally in India, Myanmar (Bhurma), Sri Lanka, Thailand & Laos. It has been successfully established throughout tropical Asia, in parts of tropical Africa and in Latin America and the Caribbean. Teak has also been introduced in some islands in the Pacific region and at trial levels in northern Australia.

Although teak logs harvested from native forests, principally in India and Myanmar, are major contributors to the global timber trade, the supply of logs from these countries is becoming progressively restricted. In Thailand the harvesting of teak, along with other native forest species, has been prohibited since 1989, while in Laos supplies have been severely constrained pending a reassessment of harvest potentials.

Long-established and substantial markets for teak products, such as Thailand, Singapore and China, are experiencing major concern regarding the future supply of teak. Plantations are an important source for narrowing the growing gap between supply and demand for teak.

Demand for teak is universal and almost unlimited. With its golden colour and appealing texture, teak enjoys an unparalleled worldwide reputation as a premier hardwood. It is visually attractive, durable, easy to work with, termite resistant and suitable for most conceivable forms of end use. Teak wood lasts for hundreds of years in shipbuilding and construction.

Teak commands an exceptionally high price compared to other commodity hardwoods due to its desirability for specific applications and the shortage of supply. Although plantation teak is now emerging into the market, a universally recognised Food and Agriculture Organisation report from 2001 indicates that there will continue to be a shortage of supply over demand until at least 2030. This has led to an average market value inflation of 6.75% per annum over the last 10 years.

Teak’s broad spectrum of uses means that demand is potentially endless, but supply is extremely limited and has enormous possibilities for growth. Products include: sawn timber for construction veneer and plywood luxury yacht finishes strip and block flooring furniture components solid doors, door and window frames laminated boards and panels, carved items for decoration household utensils and kitchenware.

Teak is the number one tropical hardwood. Although plantations date back as far as 150 years in India and Myanmar, plantation establishment has accelerated in the past 20 years as growth has demonstrated impressive potential. With the decreasing availability of teak from natural forests, plantations are becoming an increasingly important source and will likely take primary position in the future. As demand for plantation teak expands, the private sector has increasingly become involved in satisfying this market. As well as their undoubted profitability, teak plantations are socially and environmentally beneficial to their host areas.

ABOUT OUR COMPANY

Teak is widely regarded as one of the most durable, robust and sought-after tropical hardwoods in the world and teak plantations have historically been the privilege of institutional investors and sovereign wealth funds. Today, however, increased awareness of the low volatility and predictable growth characteristics of this asset have led to a steady increase in demand for the inclusion of teak trees in investment portfolios. AsiaTeak has responded to this emerging demand by pioneering a sustainable and secure structure for individuals to access this predictable and lucrative market.

AsiaTeak recognises the long-term future value of this asset and was established in April 2009 for the sole purpose of managing and producing high-grade teak from managed plantations in Sri Lanka and Thailand and periodically release a portion of our stocks onto the market for private ownership. Clients may buy saplings trees from our plantations in Sri Lanka or choose semi-mature trees in Thailand. Liquidation of the asset is achieved by the felling and sale of the mature teak directly onto the Asian timber markets.

As well as managing its own sites, AsiaTeak provides expert forestry management services for private individuals and corporations who wish to establish their own teak plantations.

The collective goal of AsiaTeak and its group of companies is to produce the world’s most sought-after and valuable teak trees. This will be achieved through expert forestry management policies, an intimate understanding of the marketplace and strong corporate governance. These three pillars of efficient and ethical practice will provide a solid foundation with which to maintain the consistent growth of the business worldwide and deliver on its contractual obligations to customers and private clients over the medium to long term.

ABOUT US