Nov 30, 2004. /Lesprom Network/. Priceworth Wood Products Bhd (PWorth) plans to acquire a timber concession deal in Papua New Guinea in the second quarter of next year, executive director Michael Chok Syn Vun said. The proposed 30,000ha timber concession was expected to be worth between RM75mil and RM100mil, reported Malaysian Star newspaper. “We will continue to source for other opportunities to secure timber resources to ensure continuous supply of raw material,” he told reporters at the company's transfer to Bursa Malaysia's main board in Kuala Lumpur yesterday. Asked about the duration of the concession, he said: “It's probably about 10 years but it is still at a discussion stage.” Chok said the company, which had acquired Cergas Kenari Sdn Bhd and Teras Selasih Sdn Bhd, was also looking at acquiring Sinora Sdn Bhd and Innora Sdn Bhd to obtain exclusive rights to extract and sell timber. He said with the acquisitions of Cergas Kenari and Teras Selasih, the Group would have exclusive rights to extract and purchase timber from between 25,000ha and 30,000 ha timber concession area in Kuamut Forest Reserve in Sabah. “We have submitted our application to Securities Commission for the proposed acquisitions of Sinora and Innora,” he said, adding that the group expected to complete the acquisition exercise by the first quarter of next year. Chok said the group was looking to explore new export markets, including Europe, Thailand, Taiwan and Singapore next year, while maintaining its established export markets, which contributed 95% of revenue, particularly China, Japan and South Korea. Upon completion of the proposed acquisition, the group plans to expand the existing production capacity of its saw mill in Sandakan from over 300,000 cu m of logs extracted to 400,000 cu m by the end of 2005. The group's revenue for the financial year ending June 30, 2005 was expected to rise by 20% to 30% with the increase in production capacity, he added. PWorth recorded revenue of RM175.1mil and net profit of RM8mil for the financial year ended June 30. On the prospects of the timber industry, Chok said the demand was expected to grow in tandem with the growth in demand for residential properties and furniture. “Prices of wood products would be sustained at current levels with continued demand from China and Japan,” he said. “We also expect higher demand in the run up to the 2008 Olympics as timber will be used for construction of sporting facilities and refurbishment of hotels and hospitals.” The counter opened at RM1.05 yesterday, up 3 sen over the previous closing price of RM1.02. It closed unchanged on volume of 8.05 million shares after trading between a low of 96 sen and a high of RM1.07.