India likely to remain major buyer from Ta Ann Group
SIBU: Ta Ann Holdings Berhad ( Ta Ann) is confident that India will remain the major buyer from them throughout this year.
Ta Ann chief executive officer Dato Wong Kuo Hea said India will definitely remain as the major buyer with export volume expected to remain strong in FY2018.
“The export selling price for our Group has achieved USD370/m3 on average in March 2018 compared to March 2017, achieved 65 percent increase,” he disclosed.
He ment ioned this when questioned by the Minority Shareholders Wacthdog Group ( MSWG) from Kuala Lumpur recently.
Wong read out the text of the Q&A session held between MSWG and Ta Ann Board of Directors yesterday during Ta Ann Holdings Berhad’s annual general meeting at a hotel here yesterday.
When asked by the MSWG on whether the export volume of the Group expected to decline further in FY2018 following the reduction in export quota from 30 per cent to 20 per cent since July 2017, Wong replied that the changes in forestry policies and export quota expected to be certain and announced only by mid- June 2018.
“Unfortunately, this is the government policies whereby we have to follow even though logs export will generate good profit for
Unfortunately, this is the government policies whereby we have to follow even though logs export will generate good profit for the Group.
the Group,” he pointed out.
Meanwhile, Wong said, as reported in their annual report, the production volume in plywood division had declined by 23 per cent in FY2017 due to shortage of log supply.
“To off-set the decline in logs production, the Company has strategized in utilising more plantation logs and imported Eucalyptus Veneer for plywood production and develop new markets for plantation log products,” he explained.
Wong expected shortage of logs to continue in FY2018.
“However, the log supply situation in FY2018 is being managed by increasing the harvesting of the mature planted forests for the downstream plywood manufacturing.
“Moreover, we have adjusted our plywood production according to the anticipated log supply and we will maintain plywood production at this level for sustainability,” he added.
Dato Wong Kuo Hea, Ta Ann chief executive officer