KUALA LUMPUR: Samling Timber Malaysia recently signed a memorandum of understanding (MoU) with Australia-based Loggo IP Pty Ltd to jointly use planted wood species such as Acacia and Eucalyptus for building systems.
Loggo IP is a developer of competitive engineered wood products (EWP).
The MoU is aimed at using Acacia and Eucalyptus wood species for housing, commercial and government buildings, three-storey walk-ups, shop-top housing, mid-rise, and multi-residential apartment blocks.
"We will work together on a pilot project in Sarawak using Loggo IP's patented engineered wood technology focused on a burgeoning forest recovery industry to develop small-diameter true rounds or peeler cores," Samling Group chief executive officer Lawrence Chia said in a statement.
The MoU was signed by Lawrence Chia and Loggo IP founder and managing director Pat Thornton in Sarawak.
"As the world shortage of timber hits home, we are convinced Samling, long respected globally for its high standards of sustainable forest management, can develop these cost-competitive systems across Southeast Asia and beyond," Pat Thornton said.
Chia further explained that millions of peeler cores are produced annually as waste from plywood production.
These were used mainly in low-value recovery options such as packaging and as fuel for thermal energy processes.
"However, Loggo IP has developed and patented three versatile engineered wood products and columns, and each can be made from low-value forest thinning or peeler cores.
"Two of these beams can use Samling's ply as a web.
"Apart from the financial benefits, Loggo IP's low-tech, minimal processing and set-up costs and the economic advantage of these low-value plywood by-products are a green and sustainable way to increase returns," Pat Thornton said.
Sarawak Timber Industry Development Corporation (STIDC) is a corporate body mandated by the state government to regulate and facilitate the advancement and sustainability of the timber industry in Sarawak.
In witnessing the MOU signing, STIDC advisor Datu Hashim Bojet said the agency is pleased that industry players are taking initiatives to develop EWP using planted wood in Sarawak.
"This is aligned with our vision to utilise more planted logs for high-value wood-based products like engineered wood.
"This is also in line with the state's aspiration for the timber industry as one of the most important sectors to transform Sarawak into a developed state by 2030.
"We are confident that this MoU will allow Samling to progress from the initial stage of assessment to later manufacturing these high-quality structural components, first for local and then for global markets," Hashim said.
He further said that this effort is fully complementary to STIDC's overall EWP vision, which includes laminated veneer lumber (LVL), glued laminated (Glulam) and cross-laminated timber (CLT) products.
The Asia-Pacific floor coverings' market alone is estimated to exceed US$250 billion by 2027.
These floor coverings, tiles, boards, carpet, and vinyl, amongst others, should be held up by greener timber sub-floor frames as the world turns slowly against the high greenhouse gas (GHG) pollutant concrete and steel industry.
Under its sustainable forest mandate, Samling manages around 1.2 million hectares of forest land and 190,250 hectares of gross plantable forest plantations in Malaysia.
Operating for more than 50 years, Samling is one of Malaysia's largest timber companies, processing its logs into sawn wood, plywood and veneers in an integrated upstream and downstream operation.
The company has obtained forest management certificates for three of its forest management units (FMUs), as well as four licences for planted forests, all under the Malaysian Timber Certification Council's Malaysian Timber Certification Scheme, which is endorsed by the Program for the Endorsement of Forest Certification (PEFC).