HGP

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HGP GROUP PRESENTATION


HGP GROUP HISTORY •

HGP Group has been created in Brazil, and belongs to three brothers from the Gomes Pereira family who is linked to the Pine Chemical activity for over 100 years. With roots in Portugal, where they develop real estate sector, forests, organic farming (especially wine produce), the Gomes Pereira family came to Brazil in 1992 foreseeing it's expansion and internationalization. Till 2005, they were partners of Resinas Brasil Group, when they sold his chare. Having decided to continue in Brazil, in the same branch of activity, they formed the HGP Group. Based on the philosophy of vertical integration, which they believe is an important strength in this sector, the Group owns presently a chemical plant of Gum Rosin – HGP Indústria Química, LTDA and Agro Florestal Lavras, LTDA, a forest operation, owning nine Pine Forests, with a total of 4.000 hectars, in S. Paulo state. A group with important knowledge and know how both general managers of the two enterprises have a special skil in their area of competence, as well as a long experience due to many years working with.


Aerial view of HGP Chemical Industry, LTDA


HGP Indústria Química, LTDA • The plant, with good access and infrastructure is situated in the Sorocaba Industrial District, on a 90.000 m2 area, producing presently Gum Rosin, Turpentine, maleyic and fumaric resin and esters. In the near future we foresee a diversification of our production,products based on mineral source. • The instaled production capacity is about 9.000 tons Rosin and 1.800 tons Turpentine a year. • The production arrangement of the plant was purposely engineered in order to take advantage of gravity power and optimize the consumption of energy. • The plant is equipped with two different distillation process allowing a tailor made preparation of finish products.


Part of the building where is processed the distillation and colophony packing


Innovating Product Presentation • Beyond traditional rosin in blocs or flakes, HGP Química has innovated on the presentation of our products introducing pellets. Innovation also on end products package, using big-bags, beside drums, bags and paper board boxes. • All time HGP is making researches in order to meet the market needs and it has pushed us to increse our products lines, such as: Elliott Gum Rosin, Turpentine, Esther (Food and Industrial), Fumaric Resin and Maleic Resin. • The plant equipped with a laboratory for developing needs is eqquiped with new instruments in this area of activity which allows complete and self reliant control of the end products. In building our plant we paid attention to the importance on environment operation; thus an effluent treatment station has been installed.


R&D - Part of the laboratory


Marketing Actuations Current Products LATAM, USA, EUROPE and ASIA • Elliottiis Gum Rosin • Turpentine • Esther (Food and Industrial) • Fumaric Resin • Maleic Resin


Briefly the Quality Certification will start Acting in the internal and external market the main targets of “HGP Química” are: - Pharmaceutical industry - Paints and Varnish Industry - Food industry - Cosmetic industry - Veterinary industry - Adhesives - Mining industry


Agro Florestal Lavras, LTDA •

Agro Florestal Lavras is a company which deals with forests management (own and rented) aiming the optimization of environment, social and economic areas.

This management aims essentially plantation and handling of pine and eucalyptus forests, tapping, wood harvesting, followed by new plantations perpetuating the cycle

In the new plantation we use clones or improved seeds, assuring a super quality material, targeting better profits as well for production of crude gum and wood quality.

Agro Florestal Lavras, LTDA integrates nine forests where about 4 million trees were planted, part of them tapped, being an important resource of supply to HGP Química's plant.

This source is completed by the rental of one governmental forest (Horto de Angatuba) as well as the purchase of crude gum in the market.


Fazenda S達o Filipe


Fazenda São Filipe • This Forest, acquired in 2005, is located at Municipal District of Guareí SP, being part of the old Forest Complex of S. Pedro, about 180 Km from S. Paulo. It has very good access by Castelo Branco Highway (Km 161). • With more than 1,000 ha, this property has about 600.000 pine trees some are more than 25 years old, where from we are tapping crude gum. It has also new some plantations of pine trees and eucalyptus.


Fazenda Lavras


Fazenda Lavras • This property, bought in 1994, is located at the Municipal District of Ribeira, in SP. • It has good access by asphalt and earth track, passing through Ápiai. • With a total of 789, 2 ha, it has 560.00 pine trees, aged 1 to 32 years. About 30.000 pine trees are being tapped.


Fazenda Pouso Triste


Fazenda Pouso Triste • This property was bought in 2004, located at Ribeira Municipal District - SP, 2 km far from the asphalted road which links Apiaí to Ribeira. • With a total area of 661, 54 ha, between 2004 e 2005 we planted about 600.000 pine trees and 25.000 eucalyptus. Today we only do maintenance.


Fazenda Beira Rio


Fazenda Beira Rio • This property, bought in 2005, is located at Ribeira District - SP, tracking Ribeira´s river along 3 km. It has good access by asphalted road and tracked earth road. • With a total area of 241, 40 ha, we planted over 250.000 pine trees.


Fazenda Ouro Verde


Fazenda Ouro Verde • This property was bought in 2006, and is located at Itapirapuã Paulista’s Municipal District - SP, in the neighbourhood of Ribeira’s. • With a total area of 185,66 ha, this forest is totally planted with pine trees aged 2 to11 years old, a total of 215.000 pine trees.


Fazenda Americana


Fazenda Americana • This property has been bought in 2006, and is located at Barra do Chapéu in Ribeira’s Municipal District, . It has good access with earth track, 3 km from Barra do Chapéu’s town. • With a total area of 465, 86 ha, 450.000 pine trees have been planted. • The Forest has an arboretum, to breed plants not only for the Group, but also to sell to others.


Fazenda Pi達o Moquem


Fazenda Pião Moquem • This property was bought in 2005, is located at Ápiai’s Municipal District. • With an area of 452, 54 ha, totally covered essentially with Bracatinga, very used for energy source which can be legally exploited. 55.000 pine trees have already been planted.


HGP GROUP

HGP Indústria Química Ltda. Carlos Gomes Pereira- President Luiz Carlos de Oliveira – General Director www.grupohgp.com.br

M.VINHA - May 2009


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