One of Malaysia’s largest timber groups, Sarawak-based timber company Ta Ann Holdings Bhd, has announced expansion plans for this year which include development of its plywood mill, oil palm plantation and tree-planting programme.
Ta Ann managing director Wong Kuo Hea said a ninth plywood line will be commissioned by the second half of the year which will increase Ta Ann’s annual production capacity by 15% – or 42,000m3.
The company will also undertake a biomass power plant project this year to generate power for its plywood mill.
More than 90% of Ta Ann’s plywood output is exported to Japan, accounting for more than 200,000m3 a year, with the remainder going to South Korea and the UK.
The company achieved CE marking certification for its plywood products last year which allows for premium pricing for products sold in Europe.
Ta Ann group’s three timber concessions and log supply agreement with the Sarawak Timber Industry Corp covers more than six million m3 of timber stocks which will service its downstream requirements for the next 10-15 years.
Subsidiary Ta Ann Plywood Sdn BHD aims to produce 294,000m3 of plywood, of which one-third will be treated to produce coated plywood.
Mr Wong said the group is seeking additional sources of log supply both locally and overseas to boost resources. It is also looking at establishing a forest management unit in a bid to gain more forest management certification.
Timber Workers for Forests, formed to share concerns about state forestry practices, hs given its backing to Ta Ann Plywood’s plans to establish mills in southern and north-west Tasmania. Forestry Tasmania is selling Ta Ann about 300,000m3 of forest to serve the facilities.
The group’s support is conditional on plantation timber being used to feed the mills, which will serve the panels and flooring markets.
