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Brazil slaps large fine on lumber company owned by Swedish sporting goods magnate

Brazil slaps large fine on lumber company owned by Swedish sporting goods magnate

Environmental authorities on Friday announced a nearly US$280 million fine on a lumber company owned by a Swedish sporting goods magnate for alleged illegal logging activities.
Gethal Amazonas S.A. was fined 450 million reals (US$279 million) for the illegal logging, transportation and sale of nearly 700,000 cubic meters (24.7 million cubic feet) of timber, the equivalent of roughly 230,000 trees, said Marcelo Dutra, a spokesman for Ibama, Brazil's environmental agency.
Gethal is owned by Johan Eliasch, chairman and chief executive officer of sporting goods manufacturer Head and co-founder of Cool Earth, an environmental activist group based in Britain that seeks to buy portions of the rain forest for preservation purposes.
Gethal said in a statement that the fine was for alleged irregularities committed before Eliasch purchased the company in 2005. The company said the fines either have been annulled, reduced, or are still being appealed.
The statement added that after Eliasch purchased Gethal, the company stopped all logging activities. It did not say what the company's principal activities are.


Updated : 2021-03-09 03:15 GMT+08:00