oil palm trunk: 18 million logs and lets use it

oil palm trunk: 18 million logs and lets use it

OIL PALM TRUNK: 18 MILLION LOGS AND
LETS USE IT
BY
Dr. Jalaluddin Harun and Dr. Loh Yueh Feng
Malaysian Timber Industry Board
Overview of Malaysia Timber Industry
2
MALAYSIA: CONTRIBUTION OF TIMBER INDUSTRY (2014)
MARKET
Export : RM
20.52 billion
Domestic : RM
13 billion
Export
Contribution
2.67 % from
RM 766.13 billion
Total : RM 33.52
billion
INVESTMENT
Domestic:
RM 518.7 million
FDI : RM 64.7 mil
WORK FORCE
Total:
RM 583.4 mil.
More than
160,000 workers
3
Malaysia’s Export Ranking
For Timber Products & Furniture, 2013
SAWNTIMBER
LOGS
Rank
1
World
USA
16,948,244
World
35,083,849
MOULDINGS
World
4,723,525
PLYWOOD
World
14,988,594
FURNITURE
World
83,321,876
2,444,078
Canada
7,443,597
China
647,720
China
5,034,169
China
28,873,765
1,928,883
Russia
3,652,328
Indonesia
508,960
Indonesia
2,176,213
Italy
7,719,308
Russia
1,640,995
Sweden
3,276,474
Brazil
470,118
Malaysia
1,690,139
Germany
7,558,015
Myanmar
1,392,734
USA
3,080,051
USA
322,160
Russia
995,172
Viet Nam
3,931,239
New
2
3
4
Zeala
nd
5
Canada
886,490
Germany
1,939,400
Chile
272,945
Finland
636,364
Poland
3,621,847
725,562
Finland
1,893,071
Poland
252,760
USA
444,692
USA
3,180,183
6
Papua New
Guine
a
7
Malaysia
593,836
Austria
1,505,207
Germany
226,554
Brazil
429,229
Canada
2,111,557
501,361
Romania
940,534
Malaysia
198,843
Austria
281,240
Malaysia
1,778,763
8
Czech
Repu
blic
437,474
Thailand
900,522
Italy
176,439
Germany
270,672
Sweden
1,659,777
9
Solomon
Island
s
10
Germany
358,242
Chile
812,531
Austria
128,252
Chile
253,562
Denmark
1,437,544
11
France
346,506
Malaysia
798,960
Canada
125,437
Canada
222,629
Spain
1,379,677
MALAYSIA : WOOD-BASED MILLS (2013)
*comprising pulp & paper, matches, pencil, wooden pallet
Source : DOSM, JPSM, Sabah FD,MID Sabah, STIDC
5
Wooden Furniture
RM 6,328 Million
32%
Rattan Furniture
RM 35 Million Other Products
0.17%
RM 870 Million
4%
Logs
RM 2,073 Million
10%
Builders Joinery &
Carpentry
RM 1,000 Million
5%
Sawntimber
RM 2,545 Million
12%
Wooden Frame
RM 123 Million
1%
Fibreboard
RM 995 Million
5%
Chipboard/
Particleboard
RM 306 Million
2%
Sumber: DOS & MTIB
Mouldings
RM 711 Million
Veneer
3%
RM 304 Million
1%
Plywood
RM 5,199 Million
25%
Total: RM 20.5 Billion6
NATIP - NATIONAL TIMBER
POLICY (2009-2020)
17 FEB 2009
PUTRA WORLD TRADE
CENTER (PWTC)
7
7
NATIP Targets by 2020
8
8
Thrusts of NATIP
Thrust 1:
Industry
Structure
Thrust 7:
Bumiputera
Participation
Thrust 6:
Funding &
Incentives
Thrust 2: Supply
of Raw Materials
NATIP Thrusts
Thrust 5:
Human Capital
Development
Thrust 3:
Innovation &
Technology
Thrust 4:
Marketing &
Promotion
9
9
NATIONAL TIMBER INDUSTRY POLICY (NATIP) 2009 - 2020
Trust 2: Raw material
Trust 3: Innovative and
technology
Trust 4: Marketing and
promotion
• Alternative raw material – kenaf, oil palm, bamboo
• Encouraging the use of biomass as a supplementary
resource
•To remain competitive, the industry needs to
develop high quality and specialized products for
niche market
•To improve the R&D to inculcate the elements
of creativity and innovation
•Enhancing market creation through branding based
on quality, design, and value creation
•Establishing and promoting the ‘green’ image
•Intensifying the marketing of potential/new product
10
OIL PALM TRUNK
• Rapid growth of oil palm industry in Malaysia.
1990 (1.7 MILLION ha)
2014 (5.3 MILLION ha)
•
The annual availability of oil palm trunk is estimated
18 million trees (27 feet) or 10 million cubic meter on
average130,000 hectares of replanting each year (20152032)
•
Due to depleting supply of timber, oil palm has
become the important alternative raw material
•
Oil palm tree is a rich resource of lignocellulosic raw
material and can be used for various applications in wood
industry e.g. Plywood, sawn timber, particle and fiberbased products.
11
Malaysia: Total Oil Palm Replanting Area
Average replanting area in year 2015-2031= 130,000/year
Source: MPOB
12
12
Source: MPOB
45,275
ha
56,961
ha
34,184h
a
13
13
Availability of Oil Palm Trunk
Availability of oil palm tress 2015-2031 = 18 million logs/year
Source: MPOB
14
14
BUSINESS POTENTIAL
Forecast of Oil Palm Trunk Supply, Plywood and Sawn Timber production
in Malaysia from 2015 to 2032
Year
2015 ~ 2020
Area due for
replanting (ha)
2021 ~ 2026
2027 ~ 2032
593,528
958,925
805,892
Number of felled oil
palm trunks
80,719,808
130,413,800
109,601,312
Amount of plywood
produced (m3)
19 Million
31 Million
26 Million
Value Plywood (RM)
21 Billion
34 Billion
29 Billion
4 Million
6 Million
5 million
8.8 Billion
13 Billion
11 Billion
Amount of Sawn
Timber Produced
(m3)
Value Sawn Timber
(RM)
15
Source: MPOB and MTIB
15
AVERAGE VALUE PER YEAR BY REGION
Sabah
Sarawak
Peninsular
Total
Replanting
Area
56,961
34,184 ha
45,275 ha
131,390
No. of tree
7.75 mil
4.65 mil
6.16 mil
18 mil
1.8 mil. m3
RM2 billion
1.1 mil. m3
RM1.2 billion
1.4 mil. m3
RM1.6 billion
4 mil. m3
RM4.8 billion
222k m3
RM0.5 billion
294k m3
RM0.6 billion
886k m3
RM1.9 billion
Value for
Plywood (RM)
Value for Sawn
370k m3
Timber (RM)
RM0.8 billion
16
16
TARGET AND WAY FOWARD
CURRENT PRODUCTION OF OPT PLYWOOD 2014
Cost of production (RM/panel) of 12-mm-thick plywood
Items
OPT log
Tropical hardwood face veneer
Resin & chemicals
Salary/wages
Electricity & utilities
Repairs & maintenance
Total Cost
Profit: 10-17% of production cost
RM/panel
10.51
5.50
4.80
9.66
1.76
0.95
33.18
RM/m3
297.96
155.98
136.13
273.95
50.00
26.91
940.93
KPPK
MALAYSIA : WOOD-BASED MILLS (2013)
Sawntimber
996
Mouldings
328
Furniture plants
2,265
4,217
Mills
Kiln drying/preservation
plants
215/99
Source : FDPM, FD Sabah, FD Sarawak
Plywood/veneer
mills/blockboard
218
Others
84
MDF mills
14
TARGET PLYWOOD PRODUCTION IN 2020
•
Baseline: RM54 Million (2014), target annual growth of 30% to achieve
RM150 million by 2020
20
20
VALUE CHAIN - PALM FURNITURE
Palm Tree
RM250
Palm Tree
RM 140
Palm sawntimber
RM 1,100
Palm plywood
RM 1,100/m3
Palm Furniture
RM 3,000
Palm Furniture
RM 5,000
21
Furniture making by local industry
Furniture making
New Design of Palm Furniture Prototype
by Designer Mobili under TANGGAM MTIB
by Designer Mobili under TANGGAM MTIB
CHALLENGES & WAY FOWARDS
1. Plantation policy for extracting the oil palm trees
2. Inherent property of oil palm wood for proper processing and
utilization-More R&D
3. Old plywood and sawmills require modification to process oil
palm trunk
4. Require more market promotion of this new OPT products
26
Contact us:
Malaysian Timber Industry Board
Fibre and Biocomposite Development Centre (FIDEC)
Lot 152, Jalan 4, Kompleks Perabot Olak Lempit
42700 Banting, Selangor, Malaysia
E-mail: [email protected]
Tel: 603-31491502 Fax: 603-31491607