Coillte, the State-owned forestry group, yesterday said it would target wood panel supply contracts for the London 2012 Olympics, as it announced a 14 per cent increase in profits last year.
Profits rose to almost €22.5 million in 2006, a year in which the forestry and forest products company made its largest acquisition to date.
Coillte's turnover fell slightly to €214 million due to the closure of its underperforming Christmas tree farming and tree care operations.
The company also had lower sales of OSB (oriented strand board) in the US through its SmartPly business.
Chief executive David Gunning said he would not rule out further closures of underperforming businesses, but he said that the positive developments for the group in 2006 were not reflected in the annual report's figures.
The completion of its €66 million purchase of the Weyerhaeuser plant in Clonmel, Co Tipperary, now renamed Medite Europe, is expected to increase turnover by 50 per cent.
The group is forecasting sales of €300 million in 2007.
Mr Gunning said there were growth opportunities for Coillte Panel Products, the newly formed division that comprises SmartPly and Medite, which manufactures medium density fibreboard.
Mr Gunning said the renewal of the group's Forest Stewardship Council (FSC) certification last year meant Coillte was in a good position to win supply contracts with companies working on the construction of the London 2012 Olympics.
The event in London is being hailed as the first sustainable Olympics.
The group is being assisted by Enterprise Ireland in its effort to pick up Olympic business.
FSC certification guarantees that the forest assets are managed in accordance with strict environmental standards and is seen as an important marketing tool for timber products, particularly for public procurement projects.
Coillte Forest, which manages the group's forestry business, generated sales of €94 million last year.
Mr Gunning said Coillte Enterprise, the group's venturing arm, was examining the use of land assets for wind farming and biomass projects.
