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Oji, Sumitomo Forestry complete Myanmar sawmill

2016-05-04 09:43:54

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MAWLAMYINE, Myanmar -- Oji Holdings and Sumitomo Forestry held a ceremony Friday to mark the completion of a lumber mill here, reportedly the first investment in Myanmar's lumber industry by a Japanese company since the country started undergoing democratic reforms in 2011.
 
The mill in southeastern Myanmar can process 8,000 cu. meters of lumber annually. It will convert locally grown rubber trees into products for making furniture and construction materials, with those products to be exported to Japan and China. The plan is to double capacity in or after fiscal 2017, Oji Forest & Products President Hironobu Ohara said at the ceremony.
 
Oji Forest & Products owns 54% of the mill's operating company, which is capitalized at $2.25 million, while the Sumitomo Forestry group holds a 26% interest and a local furniture manufacturer owns the remaining 20% stake. The mill employs around 120 workers and began operations in stages late last year.
 
Myanmar has abundant forest resources but little in the way of lumber processing, and the government has sought to attract investment in this field. Oji Holdings also operates a cardboard plant in Yangon and is building a packaging materials plant in Thilawa, a suburb of Myanmar's biggest city.
 
Source: Asian Nikkei.