Malaysia to develop premium timber product for Germany

Apr 21, 2005. /Lesprom Network/. Several government agencies and members of the local timber industry have come together to jointly undertake a project called the "High Grade Laminated Scantlings of Less Commercial Malaysian Timber Species" or Lamscant, to develop a premium grade product for the European market, especially the German market. The premium grade product to be known under the Malaysian brand name of "LAMTEC" is expected to be launched in Germany by October this year. The parties involved in the project are the Malaysian Wood Industries Association (MWIA), Malaysian Timber Industries Board (MTIB), Malaysian Timber Council (MTC) and Forest Research Institute of Malaysia (FRIM). "It is a special project where all the parties will work together to produce a very high end product," said Minister of Plantation Industries and Commodities, Datuk Peter Chin Fah Kui. Speaking to reporters after officiating the signing of a memorandum of understanding between the four parties, here today, he said that the type of laminated scantlings to be produced are used for window frames and are capable of withstanding extreme weather conditions. The project, to be handled by the Lamscant Project Steering Committee under MTC, will be funded through the Malaysian Timber Industry Development Grant worth RM5 million. All the parties involved would play a major role in the project with MWIA to identify members and produce the sample, FRIM to develop the product and test the samples while MTIB would have to ensure the manufacturer adheres to the quality standard. MTC meanwhile would market the product at a premium price in Europe. Chin said the development of such a premium product for the niche market could provide better pricing. "I commend these agencies for their proactive efforts as the the project would bring greater value to these species which are presently exported as low value rough sawn timber to the low price markets," he said. He said that marketing the laminated scantlings as a service package that included adopting quality standards, branding and warranty was a novel approach. This certainly contrasts with the present practice of merely producing and selling a product in the market with importers dictating the terms including prices. Meanwhile, the Chairman of Lamscant Project Steering Committee, Low Kian Chuan said that the participating mills who are members of MWIA have showed their commitment to move forward by committing their time and resources towards the project. Currently, there are only three companies participating in the project. "I hope that more companies will participate in this project. It is open for any timber player. But, they must achieve a requirement standard of the Quality Assurance guidelines adapted from German specifications," he said.