EsEn
Noticias

Bozovich to arrive in South Africa in 2024 with high-end products: “boutique offer”.

industria maderera sudafrica bozovich

Lima, 10/23/2023 – Maderera Bozovich Announces Expansion into the South African Market in 2024

Maderera Bozovich unveils its plan to expand into the South African market in 2024, offering an exclusive range of premium wood products. This strategy aligns with the company’s robust distribution model, where 90% of its sales are directed toward exports, with only 10% focused on the domestic market.

Adapting to Global Market Dynamics

The contraction of the construction sector this year has significantly impacted Peru's wood production industry, with a projected 25% decline by year-end, according to the SNI. This local demand drop has forced many forestry operations and sawmills to reduce output or cancel extraction plans. However, exports have shown a more promising outlook.

Ivo Bozovich, General Manager of Maderera Bozovich, remarked:
"Prices have fallen due to oversupply and reduced demand, compelling us to adjust our production. Despite these challenges, we have increased our market share in international markets, achieving a 15% share of wood product exports."

adaptandose mercado global maderera bozovich

The Leadership and Reputation of the Bozovich Brothers

The success of Maderera Bozovich is driven by the leadership of Drago and Ivo Bozovich, pivotal figures in the company’s journey.

Drago Bozovich Noriega, CEO of Maderera Bozovich, has spearheaded the transformation from a raw wood producer to a global supplier of finished wood products. With over 70 years of expertise, Drago has expanded the company’s international presence in markets like Russia and New Zealand, recognized for his innovation and competitiveness. His educational background, including a degree in Business Administration from the University of Lima and an Advanced Management Program at INCAE Business School, has equipped him to lead this transformation.

Meanwhile, Ivo Bozovich, with over 20 years of experience, has optimized the company’s operations, reducing production costs by 30% and managing an annual procurement budget exceeding $33 million. His leadership has been crucial in diversifying the product lines and strengthening Bozovich’s global footprint.

Expansion into South Africa: A High-Potential Boutique Market

Ivo Bozovich highlighted the company’s interest in entering the South African market, describing it as a niche with significant potential for premium wood products.
"South Africa has a boutique market that values and consumes high-quality export products. We will enter through a local distributor, enabling us to position our products in an emerging market with strong purchasing power," he explained.

Diversification and Production Capacity

diversificacion capacidad productiva maderera bozovich

Bozovich is not only focused on exports but also diversifying its product and service offerings in Peru. The company provides flooring and deck installations, old floor and terrace renovations, and other services. Its 50,000 m² plant in Lurín’s industrial zone houses its most sophisticated product lines, with a production capacity of up to 2,000 m³ of finished goods.

Additionally, Bozovich plans to develop a Boutique Industrial Park in Madre de Dios to optimize industrial processes and enhance operational efficiency.

Projections and Sustainability Commitment

Despite a projected 15% decline in sales this year, Bozovich expects to close 2023 with $20 million in revenue and foresees a significant increase in laminated and structural wood product sales for 2024. The company will expand its line of structured and varnished flooring, emphasizing the superior quality and durability of its products made from FSC-certified Peruvian wood.

Sustainability Commitment

Under the leadership of Drago and Ivo Bozovich, the company reaffirms its commitment to sustainability and the responsible management of forest resources. Bozovich implements long-term forest management plans, ensuring biodiversity conservation and the rational use of tree species in the Peruvian Amazon. It also invests in sustainable technology and collaborates closely with local communities, generating employment and improving access to essential services.

Maderera Bozovich’s expansion into South Africa marks a strategic step in its global growth, supported by strong leadership and unwavering commitment to sustainability. With premium products and a boutique offering, Bozovich is poised to seize new opportunities in emerging markets, ensuring a prosperous and responsible future for the wood industry.

About the Author:

Paolo Rojas holds a degree in Communication and Journalism from the Universidad Peruana de Ciencias Aplicadas (UPC) and has five years of experience in print journalism. He currently works as a writer at Diario Gestión.

RELATED NEWS Ver más noticias