An important differential in this business area is Duraflora S.A., a wholly-owned subsidiary, which owns the land where the forests are planted that supply the wood panel production lines, thus reducing the risk of any shortage in wood supply. There are approximately 120,000 hectares of land located in the State of São Paulo, with an average logging distance of 55 kilometers from the plants. This condition ensures that the cost of Duratex’s wood is the lowest among its competitors. The high levels of productivity are a result of the planting of genetically-selected saplings grown in its own plant nurseries. As a result of the expansions underway, the annual production capacity of saplings reached 18.9 million, a growth of 50% in relation to 2007.