OptiCept Technologies has today entered into a commercial agreement with CMPC in Chile regarding OptiBoost for the treatment of Eucalyptus cuttings. The technology will initially be evaluated for 6 months, for which the customer pays a total of 120,000 Euro.
The agreement starts with an evaluation period of 6 months, with a planned start in November 2022. If the results are satisfactory, the agreement turns into a commercial contract. The agreement includes an annual minimum fee of 84,000 euros. CMPC's ambition is to develop its cuttings production using the OptiBoost technology. When transitioning to the commercial phase, the potential is estimated at 300,000 – 700,000 Euro/year depending on the degree of utilization by the customer.
CMPC is one of the world's largest pulp and paper companies. The company has 17,000 employees and is a listed company with a turnover of approx. 6.5 billion Euros in 2021. The business includes Forestry, pulp, paper and paper products. The installation in Chile concerns the new SAGA OptiBoost machine, which is optimized for the treatment of cuttings. OptiBoost for cuttings has indicatively shown many positive effects, including improved survival during transplanting. The survival rate is the primary parameter to be analyzed during the evaluation period.
"An agreement with a world-leading company like CMPC is a big step towards a commercial breakthrough in forest cuttings. We have good hopes for successful results and in the long run, change the way cuttings are planted throughout the forest industry," says Thomas Lundqvist, CEO of OptiCept Technologies.
OptiBoost's revolutionary technology for the treatment of cuttings has several positive effects, among other things the growth, robustness, and root system of the cuttings are strengthened, which provides better survival when planting and faster growth. More surviving plants result in increased productivity and optimization in the cultivation process, where forest demand can be better matched to supply. The technology does not only work for Eucalyptus cuttings, but applies to cuttings in general.