The Malaysian Plywood IndustryThe Malaysian Plywood Industry

UtilisingUtilising

OPT LogsOPT Logs

(Oil Palm Tree Logs)(Oil Palm Tree Logs)

To ReTo Re--Invent the Plywood IndustryInvent the Plywood Industry

1.1 The Timber & Plywood industry is a Strategic

Industry that plays a key role in National Development.

1.2 The 3 Critical Issues that have confronted the Plywood Industry in Malaysia over the last years:

- Tight Raw Material (logs) supply situation

- Severe Competition in the International Markets

- ‘Green’ requirements that are ever increasing

1.3 These structural and market changes necessitate a long

term solution at the Industry Level to ensure the survival

and the development of Plywood Industry in Malaysia on

a sustainable basis.

2.1 Production Forest Logs

Logs from the production forest remain as

the mainstay for the timber and plywood

industry, but supply has become an issue

2.2 Rubber Tree Logs

While the plywood industry was quick to

input rubber tree logs, the latter has been

taken over by the solid wood and the

furniture sector

2.3 Plantation Forest Logs

There was never any significant quantities

available; acacia mangium was one.

2.4 Coconut Tree LogsOver the last decade, many plywood mills supplying to the local market have utilisedcoconut tree logs to produce plywood

2.5 OPT logsLogs obtained from the Oil Palm tree (OPT)during clearing and re-planting appear to bethe way forward for the Plywood Industry

The OPT is a residual material resource (RMR) from the Malaysian oil palm plantation. It appears well suited as rawmaterial input for the Plywood Industry because:

3.1 Supply of natural hardwood logs in Malaysia,especially West Malaysia, is depleting, and prices rising(Please refer to Appendix 1)

3.2 Biomass resources in Malaysia: plentiful but under-used;Government policy encourages utilisation;national agenda on W2W.

3.3 The mill experience todate on OPT “can get, can use,can last”

3.4 Using OPT means using less forest logs.3.5 OPT, a plantation species :

renewable, sustainable and ‘green’.

By now the merits of using OPT have become quite obvious.

A research paper prepared in July 2009 by the MPMA on developingthe Palm Plywood Industry in West Malaysia may be summarised thus:4.1 About 100,000 acres of oil palm plantation in West Malaysia will

be cleared for re-planting each year.4.2 About 2.54 million cubic metres of OPT suitable for plywood

production will become available.4.3 Assume that only half (50%) of the above-mentioned quantity is

being utilised by the plywood industry, i.e. about 1.27 millioncubic metres utilised.

4.4 Then about 508,000 cubic metres of Palm Plywood will be producedeach year.

4.5 Annual revenue of RM2 billion can be derived from the sale of PalmPlywood to the domestic market, and export to overseas markets,and from Palm Plywood furniture products.

It is believed that concerted effort on the part of the Plywood Industryworking in conjunction with Government will enable this Potential of Palm Plywood to be realised over a 10-year time frame.

The MPMA in partnership with MTIB(FIDEC), MPOB, FRIM and UPM implemented the Palm Plywood Project, 2006 to 2008 to promote the usage of OPT in the Plywood Industry. Further industrial trialling and R&D initiatives are still ongoing.

The good news is OPT have been utilised and produced into plywood (Palm Plywood) and sold in the domestic market. It is workable and viable.

At the same time, it is useful to take note of three (3) areas.

5.1 The MaterialOPT is not easy to process because its fibres are looser, extremely wet and OPT veneers tear easily.Also, it has lesser strength properties compared withhardwood.

5.2 The MachineryPlywood factories in Malaysia have been designed and built to process hardwood logs, not OPT. Modifying processing techniques and equipment aresometimes necessary to discharge operations effectively.

5.3 The MarketingPalm Plywood is relatively new in the market. To gainacceptance, product quality must be improved, and a new approach to Marketing must be conceptualized to achieve the desired result.

6.1 Developing the mechanism to regularise OPT supply on a stable

and sustainable basis

6.2 Working with OPT, a material ‘no so easy’ to handle

6.3 Modifying the processing techniques to process OPT

6.4 Undertaking technical initiatives on R&D, Product Development and

Product Standards

6.5 Initiating market development strategies for Domestic and Export

markets.

6.1 Plywood mills are presently on their own, mill by mill, to

obtain OPT supply. There is no mechanism to regularise supply.

A mechanism must be developed to ensure supply on a

regular and sustainable basis.

OPT Felling in progress Loading OPT on lorry

6.2 OPT is not an easy material to work with. Operationally there is a need to think OPT, not hardwood.

OPT Blocks in the Plywood Factory Peeling OPT at the Lathe

Wet OPT veneer at the peeling line Preliminary drying of wet OPT

veneer

5.

The gluing process

The press processPalm plywood panels

after sizing

6.3 To achieve productivity in operations and quality in products, some modification in processing techniques and in equipment may sometimesbe necessary

OPT veneer at the dryer

5.

Product Testing, R&D for OPT veneer and plywood

6.4 R&D initiatives and a continuous programme of Product Development will help the mill strengthen its position as a player in the new emerging Palm Plywood Industry

6.5 Palm Plywood, rather than as another commodity product,can claim a niche in the First World export markets as a green and environmentally friendly product, in due time

Display and Exhibition of OPT and Palm Plywood Product

The Plywood Industry and the MTIB(FIDEC), MPOB, FRIM and UPM and in fact the Timber Industry in general, are convinced that this is the way forward. OPT is the future of the Plywood Industry in West Malaysia, and in time the whole of Malaysia.