Samling, one of the world’s largest hardwood plywood manufacturers, has been warned it could lose its sustainable forest certification over its handling of a land dispute with the Penan.

The Malaysian Timber Certification Council (MTCC) has given the company until November to resolve the issue with the Penan people of Ulu Baram over a road Samling is building in the Kelabit highlands in Sarawak. The Penan say it will be used to log the forest and have put up barricades.

The loss of certification would prevent the export of Samling products to many countries in Europe, as well as Australia, Japan and the US.

The MTCC came under fire for certifying the forests from an alliance of non-governmental organisations in 2005, which called on European governments and timber industries to demand withdrawal of the accreditation.

The MTCC’s chief executive officer Chew Lye Teng has denied the council’s latest tough stance is motivated by continued pressure from NGOs.