For many years Ecuador has been the biggest exporter of balsa wood in both quantity and quality. One of the country’s biggest players in the balsa wood market is Balsasud-Balsera Sudamericana, whose headquarters can be found in the economic hub of the country in Guayaquil.
“Other countries are just arriving now to the balsa wood market but in Ecuador it has been a key product for us since 1930,” says Pascual del Cioppo, the President of the Board of Balsasud.
“Today it is attractive all over the world to purchase a product made out of balsa wood from Ecuador,” says del Cioppo.
The president of Balsasud calculates that Ecuador has around 35,000 hectares of trees capable of producing the product and he describes this asset as “a huge boost for the image of Ecuador”. The country is an emerging power in the production of other woods, but its balsa wood is a matter of pride.
Del Cioppo believes that having the headquarters in Guayaquil is highly beneficial for his company and for others in Ecuador. “It is the most attractive city in which to do business and attract investment because the authorities provide both domestic and international investors with the required infrastructure,” he explains, adding that skilled workers come to Guayaquil from all over the country. He also points out that the city’s fiscal set up is designed to help industrial development: “There are no taxes that really pressure or make life impossible for businesses.”
However, Balsasud’s president thinks that the most important economic factors in Guayaquil’s favor are the services offered to industry. “The service offered by the city hall is efficient and excellent, and that is so important at the time of setting up a company,” says del Cioppo. Another key benefit that helps competitiveness is the Port of Guayaquil, which has the largest number of moorings in the country. The president says, “Transport costs are important for us as we export 100% of what we produce and in Guayaquil they are very low and we are there in 30 minutes”.
Del Cioppo describes Guayaquil as a neat and tidy city with a much improved urban development and an economic model based on co-operation between the private and public sector. “The model of development in Guayaquil is copied by cities from all over Latin America,” he continues.
The collaboration between private sector and the city hall allows Guayaquil to invite international investors to the city. “Balsasud is not only Ecuadorian, but also has foreign capital, mainly from other Latin American countries,” says del Cioppo. Investing here could be interesting for European countries, especially Spain, and two Spanish companies are already operating in the balsa wood sector, producing wood that is then used in the manufacture of, among other things, acoustic and electronic products.
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