TFS Corporation Ltd (“TFS”, “the Company”, ASX:TFC), the world's...

TFS Corporation Ltd (“TFS”, “the Company”, ASX:TFC), the world's largest owner and manager of commercial Indian sandalwood plantations, has today signed a five-year agreement to supply its premium Indian sandalwood oil to US-based Young Living, the largest essential oil company in the world.

Under the five-year agreement, TFS will supply Young Living with Indian sandalwood oil at US$4,500 per kg plus fixed annual increases of 2.5% per annum.The total contract value is approximately AU$50 million and the first shipment of oil is expected in October 2016 with monthly supplies thereafter.

TFS Managing Director Frank Wilson said the supply agreement further demonstrated the strong global demand for TFS’s premium sandalwood products.

“I am delighted we have signed this agreement with Young Living. Our new customer recorded more than US$1 billion in sales in 2015, across 14 countries, and is intent on growing both its market presence and product range,” Mr Wilson said.

“The Young Living agreement adds to the strong momentum of supply contracts TFS has secured this year.

“TFS now has multiple supply contracts in place with global customers for both wood and oil products across a breadth of markets including cosmetics, aromatherapy, pharmaceuticals, and traditional wood uses, meaning the vast majority of our harvests are now forward sold through to 2021.”

-ENDS