Plywood Mills in Malaysia and Indonesia Forced to Stop Production

Some plywood mills in Malaysia and Indonesia were forced to stop production due to serious supply shortage. While all mills are in danger by the high log costs and the low sales prices for plywood products in both countries.

As one of Malaysian newspaper reported, one of the big plywood mills has already stopped plywood manufacturing because of log supply shortage. The company used to supply approximately 4,000 m3 of structural and concrete forming plywood a month for the Japan market.

Also, the Indonesian company closed one of its two plywood mills because of the same log supply issues. The company represents the only manufacturer of coated concrete forming panel for Japan. And it has been supplying about 7,000 cum a month from two plants. While operations at its plant were halted on October 23rd. At the same time, the supply volume will be down by a half. It also used to supply 10,000 m3 of concrete forming panel a month for Japan.

plywood mills

In September, the plywood imports from Malaysia to Japan went down to 68,600 m3, from 100,500 m3 in January 2018. While the imports from Indonesia dropped to 62,600 cubic metres from 80,000 cubic metres during the same period.

The log supply issue was most likely caused by tighter restriction of illegal harvest of timber and weather factors. The authorities launched a major crackdown on illegal logging activities and corrupt practices in the timber trade about five years ago. And the campaign is still ongoing.

Also one of the leading timber group blamed the log shortage for having to scale down its plywood and veneer production.

Thus, the plywood suppliers in the two countries proposed higher export prices of their products with reduced volume due to declining log supply as rainy season approaches. It is reported, Malaysian plywood suppliers have proposed to raise the export prices of their products. And it is about $690 per m3 C&F (cost & freight) on JAS 3×6 coated concrete forming panel and about $590 on JAS 3×6 uncoated concrete forming panel. The prices are both an increase of $10 per m3 from September.

Is there a better way to deal with this severe condition? Yes, there is.

How do you deal with wood waste? Do you want to gain the wood waste additional value?

Wood wastes are the common problem for many plywood mills. Until now, most of plywood mills have no idea what they should do about these wood wastes. PalletMach will give you some good suggestion.

Future of plywood mills

PalletMach is involved in wood waste disposal for more than 15 years. Besides, we can give you a better answer. Turning these wood waste into presswood pallets.

In the market, it is rare to see enterprises that use wood wastes as raw materials to make pallets. Does it mean that wood wastes can not be used as pallets? The results show that it is completely feasible to use wood chips for pallets! And there is also the fairly mature process at home and abroad!

Plywood mill enterprises can use wood waste to manufacture pallets, while saving costs, they can also enjoy preferential tax policies in relevant countries.

presswood pallet machine

But why rarely see the companies do this? Because the solid wood furniture factories generally do not have the production line for making pallets. If they want to produce pallets, they need another a lot of investment in the early stage. On the one hand, it is simple and rude, on the other hand, it needs investment, but the return is far away. Most companies have chosen the former.

In the long run, the production of presswood pallets is undoubtedly a good choice. Meanwhile, plywood mills should establish the perfect residual material recycling system based on their specific conditions. Besides, they also should give specific solutions for different leftover materials. It not only can bring immediate economic benefits to enterprises, but also more importantly, raise the awareness of environmental protection. Thus, it is far-reaching for plywood mills and the industry as a whole.

PalletMach can provide the whole solution for pallet production. And our main items are presswood pallet machine and pallet block machine. If you are interested in disposing of wood wastes, please contact us via email [email protected].

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