Ta Ann Holdings Bhd, Malaysian manufacturer of plywood, sawn timber, logs and timber products, is riding on Japan’s upward demand for PEFC (Programme for the Endorsement of Forest Certification) plywood products, reports The Star.
According to Ta Ann group managing director Datuk Wong Kuo Hea, the company is working closely with Japanese buyers to promote its certified plywood products and focusing on increasing the production volume of PEFC-certified coated concrete panel plywood to meet market demands.
“Some of the developers in Japan have given directives in their procurement policy to use certified materials only for their projects. To this, we anticipate a surge in demand for our certified plywood products, ” he said in the company’s 2019 annual report. This seems to come after the Tokyo metropolitan goverment officially announcing to use certified materials for their public projects.
Wong said that the full certification of the group’s three forest management units (FMUs) covering 345,000 hectares under the Malaysian Timber Certification Scheme (MTCS) had played a vital role which enables the group to further raise the production of certified plywood products. The third FMU was certified on 16 March 2020. The MTCS is the first tropical timber certification scheme in the Asia-Pacific region to be endorsed by the PEFC. With the certification, the group could make its log operation sustainable in terms of the supply of the MTCS-PEFC logs to both its plywood mills and sawmills, as well as for logs export market. It also ensures the supply and sustainability of logs over a long-term licence tenure of 60 years.
According to Ta Ann’s website, the quality of their products has met the Japan Agricultural Standard – a standard that is well accepted by the Japanese and European markets.
In 2019, Japan made up 88% of Ta Ann’s plywood exports against 91% in 2018. About 10% of the exports went to Australia and the remaining to other overseas markets.