The Lumadjang plant has started running since October last year. It produces lumber and laminated lumber from falcate logs and the products are sent to Gresik plant, which is final assembly plant in Indonesia, where materials for shelves and cabinets are made.
Nankai Plywood thinks that the demand will expand so that it decided to have the second plant at Lumadjang.
The first Lumadjang plant has two band saws, planer gang saw and finger jointer with laminating machines.
The second plant will have the same machines so that laminated lumber production will be expanded from current 400 cubic metres to 800 cubic metres.
Gresik plant has capacity of 2,500 cubic metres a month to process falcate laminated lumber for shelf and cabinet board and also ceiling strips and closet bars made out of meranti and mixed species , which are shipped for the plant in Japan for final assembly.
Falcata logs are purchased in local open market for Lumadjang plant but the company has its own plantation in Eastern Java and in two years’ time, it will start supplying from its own plantation.