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SpiritWood Corporation |
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Frequently Asked Questions |
We are all too aware of the damage that has been, and continues to be done to the world’s rain forests. Our business plan was developed to be a profitable part of the solution, rather than an exploitive part of the problem. The company’s mission is to responsibly develop sustainable tree plantations, and in some small way, reduce the pressure on the existing forested lands. Profit is not a dirty word however, and we will continue to make our decisions based on what is best for our investors. At this time we are planting Gmelina Arborea trees commonly known as "Melina" – for further details, please refer to our page entitled ‘ the product’.Gmelina is a very fast growing tree and can be harvested for uses such as pulp and paper or wallboard, after 5 - 7 years. Some of our trees that were transplanted in May 1998 are now over 20 meters tall. That’s 65 feet! When cut at 13 - 15 years, they can be used for furniture, doors, cabinets, etc. The directors will decide the best time for the trees to be harvested. This is in line with our commitment to maximise our investors return over a given period of time. The number of trees planted in each year depends on the amount of investors committed to that syndicate year. Our first year has over 250,000 trees, and we are currently planting 115,000 for the sixth year. The company has also planted a large number of trees for itself. Planting occurs throughout the main rainy season, which is normally September until February (Monsoon seasons). When it’s raining we’re planting!The trees are planted on areas of land leased to us by the D.E.N.R. The duration of the land lease is initially 25 years, with an option to extend for a further 25 years. We invest your money in trees for you, not land for us. No. All of our trees are planted on fields and rolling grasslands, which were tropical rain forests several decades ago. The company is owned by Butch Marzan and Ken Eicher. They first met in Oman, in the Middle East, in 1993, and forged their friendship into SpiritWood in the fall of 1996– for further details, please refer to our page entitled ‘ meet the directors’.Absolutely. SpiritWood Corporation is registered with the Philippines Security and Exchange Commission in Manila. The company was incorporated on 31 January 1997 and our registration number is A199701708. Each investment unit provides the land, seeds, nurturing, and maintenance for 1,700 trees. We also provide above average pay and conditions for our staff. Our current projections value each tree at $12 to $18 (net) after a 13 - 15 year growth cycle. Accordingly each unit of investment should provide a return of between $20 - $30,000. These conservative numbers are based on various cases, and the final result will depend upon the ultimate age and usage of the trees. See question #3 also. The expected return above is net of any state and harvesting taxes. It is your responsibility however, to evaluate your individual tax liability in your country. Yes. It is to be understood that this is a higher risk investment with certain factors which are beyond the control of the Board of Directors, including but not limited to, the weather, future market conditions, acts of war, government policy changes, currency rate fluctuations etc. We are now planting our fifth season’s forest, and we have had typhoons and currency fluctuations. We have also been blessed with the tremendous resilience of our trees and our people. They are ALL still growing well ahead of our expectations. Hurricanes and typhoons cause most damage in coastal areas. All of our farms are over 100 km from the coast. Two super typhoons did pass through our plantation in Santa Maria (SM-100) one-year after the trees were planted. Three super typhoons passed through our areas in 2005. Most of the leaves were blown off our trees, but all of the investor's trees survived and the leaves quickly grew back. The trees have since fully recovered and can be seen in the reports after January 2006. We have not experienced any problems with pests or disease in the four years we have been planting. All of our research and investigation on this subject indicates that pests and disease will not be a problem, as these are indigenous trees. Fire is a major concern of ours. Most of the land surrounding our farms is open grassland, which can catch fire, so we have cut and continually maintain fire breaks around all of our properties to protect our young trees. Once the trees are a couple of years old, they form a natural canopy cutting off sunlight. This kills off the grass growing under the trees dramatically reducing the chance of fire destroying the trees. Gmelina trees are naturally fire resistant. Progress reports are mailed out and posted on our web site three or four times a year. An end of year report is issued, after our Annual General Meeting. Yes, there are several plantation companies in the Philippines, but not in our general area. In addition, most of the local farmers are planting small amounts of Gmelina in any uncultivated parts of their farms. The government has been promoting the planting of trees for many years, to try and stop the destruction of the remaining tropical rain forest in the Philippines. Extremely unlikely! Of some 40 million acres of rain forest four decades ago, only 2 million exist now. In 1998 the Philippines imported over 1,000,000 logs. Expectations are that demand (world-wide) will exceed production by a larger percentage each year in the future. The Philippines has had a democratically elected government for the last 16 years. Our project is highly respected by The Secretary of the Department of Environment and Natural Resources. He has remarked at how impressed he is "with our professional commitment" during each of his 3 visits to our plantations. Our lands have an initial lease period of 25 years, and will be renewed for a further 25 years after the initial development plan is completed. spiritwood_corp@hotmail.com Ken will send you more details and registration forms for the project.
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