Sustainable Forest Inc, a consortium comprising Bulkan Timber Works, Precision Woodworking Ltd and Farfan & Mendes Ltd, will be extracting and processing timber from an 80,000-acre concession.
The launch follows a decision by the government earlier this year to improve the availability of raw materials to manufacturers who add value to logs.
The consortium said it would generate higher revenue compared to larger concession holders by means of higher efficiency and reduced capital expenditure, including the use of mobile saws in the forest.
It said its mobile saws would give more timber yield at a fraction of the costs associated with traditional methods.
Bulkan Timber Works said it had been operating at 40% capacity during the past year due to a shortage of the prime locust species.
