Nikkei informed that Shin Yang group (SY group) from Malaysia will reduce Japan-bound shipments of tropical plywood used in concrete formwork by about 30% starting in September, 2017. The decision is taken due to reduced supply of timber.
According to the news release, Sarawak State in Borneo, a production hub where Shin Yang is headquartered, charges the so-called “timber premium” to help fund local infrastructure development. On July 1, 2017 the timber premium jumped from a range of 20 to 70 cents per cu. meter to a flat rate of about USD 12. The charge is make on top of the regular timber tax.
Earlier Nine Dragons Paper denied investment in a forest project in Malaysia.
About Shin Yang:
The group is a huge conglomerate of companies. Its core activities are dedicated to timber (both upstream and downstream), property development and civil engineering, plantation and other services.