Starnberg Germany, March 1, 2004

The Europe office of CABC S.A. in Starnberg, Germany is aggressively pursuing companies in Central Europe to move some of their manufacturing of wooden toys to Honduras. According to Dr Leif Lundkvist, President of CABC S.A., Germany looses thousands of companies every year due to rising labor costs. Many toy manufacturers in Central Europe have long histories of family operated skills in quality and workman ship. Honduras could give a continuation in providing the same to the quality of wooden toys. The Honduran wood products and furniture industry have over 100 years of experience. This long history results in a high degree of productivity, technical skills, and managerial capabilities. The local industry has forged links with numerous importers, distributors and manufacturers, and has established a reputation for quality and reliability.

Two-thirds of Honduras is covered with tropical and pine forests. Honduras is known throughout the world as the only source of genuine "Honduran mahogany" (swietenia mahogany), from which the finest quality mahogany furniture is made. The country also has large reserves of high quality pine (pinus oocarpus) which is exported to the US as components and finished items. Other hardwoods such as rosewood, teak and tropical walnut are also readily available.

One well-known German company has discovered the use of Honduran labor in the production of wooden components a long time ago. The wooden dash boards of all luxury Mercedes Benz models are manufactured in Honduras using Honduran Mahogany. The hourly labor rate for wood working in Germany will pay the respective Honduran worker for two days.

Honduras would be a very excellent alternative to increase the production of wooden toys and to increase the profitability. Part of this production could be shipped to the US toy distribution channels. Most of the US consumers are not willing to pay the price for a German or Swiss manufactured toy made out of wood.

For additional information, please contact Barbara in our Starnberg office at 49-8151-4965 or fill out the reply form on CABC S.A.’s website at
http://www.ca-bc.com/zip_internacional