Pesama Timber doubles production

The state government's subsidiary, Pesama Timber Corp Sdn Bhd (PTCSB),
a company under Golden Pharos Bhd, is increasing its production of
downstream products to 60 per cent from 30 per cent
last year.

Following
this, PTCSB is optimistic of increasing its export value to European
countries including its new markets in the Middle East.

Its
chairman, Ngah Ismail said the company is currently focusing on
downstream products as there was always a demand for them while timber
logs that are processed into sawn timber will account for the remaining
40 per cent.

"There's always a high demand for wood-based
downstream products from Europe as the people there still favour wood
compared with other more modern materials.

"However, the
quality aspect must be a priority at the moment in view of competition
from African countries, which are rich in tropical woods and are
available at cheaper price," he told reporters after the Aidilfitri
open house here today.

Besides competition from Africa, the
wood industry is also faced with challenges from modern materials which
are gaining interest among customers including plastic material with
more sophisticated designs.

PTCSB currently operates a
50,000-hectare timber concession at Cherul in Kemaman, which has
entered the second phase of logging activities in 1999, following the
expiry of its first phase which started in 1974.

The company
now employs 120 permanent staff and 150 contract workers and is in the
process of a transition with the procurement of high-technology
machinery to overcome the shortage of skilled workers in the industry
at present and in
the future.

Among the wood species that
are process at its factory in Cukai, Kemaman, are "meranti", "keruing",
"kempas" and "cengal" which is among the best quality wood in the
world. -- Bernama