Business
Caravelle International Group Partners with U.S. Firm to Export Wood Products from Gabon, Africa to the U.S.
Caravelle estimates partnership could generate $200 million in revenue within several yearsU.S. partner to fund construction of the millNEW YORK, March 2,
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[{"type":"text","content":"Caravelle estimates partnership could generate $200 million in revenue within several yearsU.S. partner to fund construction of the millNEW YORK, March 2, 2023 /PRNewswire/ -- Caravelle International Group (Nasdaq:CACO), a global ocean technology company, today announced that the company has established a partnership with a U.S. corporation to manufacture wood products in Gabon, Africa for export to the United States and that the government of Gabon has granted the partnership use of 165 acres of land for the location of the lumber mill.\nThe mill will produce wood laminate flooring, plywood, and other wood products. The products will have a significant cost advantage over lumber products domestically produced in the United States because of cheaper lumber and labor in Gabon, but also because the African Growth and Opportunity Act will allow for the duty-free import of these products into the U.S.\nThe U.S. based partner will fund the construction of the mill in Gabon and already has established distribution in the U.S. to sell these products. Caravelle will ship the wood products to the United States. Caravelle will also dry the wood products in transit, using its patent-pending CO-Tech system that uses recycled engine heat for the drying process, resulting in significant cost savings and a 6-week reduction in lead times vs. traditional kiln drying at the mill.\nThe partners estimate that the venture will generate $200 million in annual revenue within several years. This is another example of how the Company is making its business less cyclical and more profitable.\n\"This is an exciting new venture for Caravelle and our U.S. based partner,\" said Dr. Guohua Zhang, Chief Executive Officer of Caravelle. \"We have had great experience working with Gabon in the past, having exported lumber from there to Asia. Expanding export into the United States is a logical next step that will be a big growth driver for our Company in the years ahead.\"\nAbout Caravelle International Group\nCaravelle is a global ocean technology company. Its business comprises of two sectors: the traditional business in international shipping, operated by the Topsheen Companies (Topsheen Shipping Group Corporation (Samoa) and its subsidiaries) and the new CO-Tech business under Singapore Garden Technology Pte. Ltd.. As the traditional business, Caravelle's int...