Sold down the river - Salva le Foreste

COMPANY PROFILES 57DLH Nordisk obtains timber from Africa, EasternEurope and South America. EAC acquires it particularlyfrom East Asia, but also from Africa and South America.The sales turnovers of the timber businesses of DLH andEAC were each approximately DKr 1 billion (US$ 114million) in 1998. In 1999, gross profit for the DLH groupwas D Kr 538 million (US$ 61 million). The group hassales subsidiaries in Belgium (Indufor), France (Induboisand Nordisk Bois), The Netherlands (Indufor), the UK(DLH Timber) and the USA (DLH Nordisk). 101The enlarged DLH Nordisk company’s interests inCentral Africa include offices in Cameroon, Congo(Brazzaville) and Gabon. 102 It buys timber from exportersin the region, rather than exporting itself. DLH Nordisk isseeking to expand its sales of timber purchased from thisregion. 103DLH’s environmental policy claims that the companyaims to trade in wood and wood-based products whichhave been sustainably produced and, “at the veryminimum, the products of DLH comply with statutoryrequirements, including the provisions of environmentallaw”. 104 The company states that it is committed to FSCcertification standards, both in its own operations, forexample in Brazil and Ghana, and for its suppliers. Thegroup provides assistance to suppliers in Brazil, Polandand Russia to obtain FSC certification. 105 But given recentrevelations of large-scale and widespread illegal practicesin the forestry sector in Cameroon in particular, and thelack of forest law enforcement in the Congo Basin regionmore generally, the group’s current timber purchases fromCentral Africa cannot be proven to come from legallyproducedsources; the company faces an uphill struggle toraise standards of forestry operations in Central Africa,where it operates as a purchaser of timber and as a forestmanager.Cameroon and CARIn May 2000, DLH opened a purchasing office in Doualato cover the CAR and Cameroon. The office is buying onan FOB basis “from the most reliable exporters” and aimsto increase DLH’s turnover of hardwood from the CentralAfrican region. 106Congo (Brazzaville)DLH Nordisk SARL operates a small office in theCongolese town of Pointe Noire for the procurement ofhardwood logs, sawn timber and veneers for theEuropean, North American and Asian markets. 107 The civilwar in Congo (Brazzaville), however, has adverselyaffected operations. The Danish management werewithdrawn from the country, the Danish manager movedto the new Douala office, and in July 2000 the businesswas being run by one local employee. 108BoplacDLH Nordisk holds 43.5% of Boplac (see Bruynzeelsection, page 55) but because of the political difficulties ofoperating in Congo (Brazzaville), the operation declared aloss in 1998. 109 Because militia activity in Congo preventedlogging, Boplac imported logs from the neighbouringcountry of Gabon during 1999 in order to sustainthroughput at its veneer facility. 110FELDMEYERHinrich Feldmeyer GmbH & Co is based in Germany. 112Internationally, Feldmeyer works as a producer and traderof tropical timber from Africa (as HIF) primarily inassociation with tt Timber International (a Swisscompany), but also with tt Tropical Timber based at theport of La Rochelle in France and Tropisch HoutNederland of the Netherlands.CameroonFeldmeyer used to operate as CIFOA (CompagnieIndustrielle et Forestière de l’Ouest Africaine), a loggingcompany whose average annual output during the late1980s was 70,000 cubic metres of logs and 15,000 cubicmetres of sawn wood. 113 CIFOA harvested one tree perhectare in a felling cycle of over 25 years. 114 The companywas sold in 1988. Feldmeyer recently established a timbertransit and supplies trading company, SAT (Sociétéd’Approvisionnement et de Transit), in Douala. 115CongoCIB (Congolaise Industrielle du Bois)Feldmeyer’s subsidiary in Congo is CIB, headquartered inOuesso. 116 Feldmeyer has a majority interest in CIB, whichwas created in 1968, and tt Timber International has aminority interest. 117 The company has been the onlycommercially successful operation in the north of thecountry on a consistent basis. 118CIB has three concessions in the north of the country,totalling 1.15 million hectares - Pokola, which is its mainbase (480,000ha), Kabo (280,000ha) and Loundougou(390,000ha), the latter being held in reserve for futureexploitation. 119 The concessions are located in primaryrainforest of high biodiversity. The area has a rich culturalheritage, being home to a relatively large number of foresthunter-gatherers, such as the Mbendjele and Baka, as wellas many farming and fishing, Bantu and Ubangianlanguage speaking sedentary ethnic groups, notably theSangha Sangha, Bongili, Kabounga, Pomo and Kaka.Annual production is currently 250,000 cubic metres,with around 60% being processed in two sawmills atKabo and Pakola. 120 The company exports about 100,000cubic metres of logs and 40,000 cubic metres of sawntimber each year. 121 The two main species harvested areSapelli and Sipo. 122CIB used to float its logs down to Brazzaville and thensend them to Pointe Noire by railway. This route has© GREENPEACEGabonDLH Nordisk has an office in Libreville for theprocurement of hardwood logs for Europe and Asia. 111