Panama has the first teak processing plant.

The new teak processing plant from forest plantations represents a $3.7 million investment.

As per Summa Magazine.

Panama boasts the region's first high-capacity and precision teak processing plant, sourced from forest plantations. It is certified in chain of custody by the FSC® (Forest Stewardship Council) and has the capacity to process 1,300 40-foot containers annually for certified premium markets.

Ecotopia Teak inaugurated the plant on January 28th in the town of Chepo, where national authorities and presidents of exporting associations such as APEX, SIP, and CONEP gathered for the event.

Ambassador Carmen Gisela Vergara, General Administrator of the Authority for the Attraction of Investments and the Promotion of Exports (PROPANAMA), pointed out that 'This investment represents a significant innovation for our country, as it enables us to export products with high domestic added value, introducing knowledge and technology transfer to export timber, which must also meet 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," emphasized Ambassador Vergara.

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

Bianca Morán, the administrative manager of Ecotopia Teak, explained during the inauguration ceremony for the 2023 teak export that this plant enables them to reach European markets with a stabilized, precise, and high-quality finished product, not just raw materials.

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

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, rather than exporting it in raw form, because it adds greater value to exports and elevates the level of technological advancement in the country.'

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

Juan Carlos Palacios, the Executive Director of the Sustainable Forestry Management Corporation of Ecuador, stated, "This investment in Panama and for the region is a starting point because this company serves as an example, not only for Central America but also for South America. It is one of the few factories that produces a certified value-added product like wood, reducing our dependence on markets like the Asian market to sell our production."