Friday 29 Mar 2024
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KUALA LUMPUR (March 28): Priceworth International Bhd expects its monthly log production volumes to improve in the coming months after registering a near six-year high in February of 18,061.99 cubic metres on the back of better weather conditions and increased production in a new area.

The output in February was 57% higher than the 11,459.54 cubic metres logged in the same period in 2017, and 16% more than the preceding month of January.

"We expect the production to further improve in the coming months with better weather conditions and additional production area in compartment 63 and 64 of FMU5 being approved," the timber and processed wood products company said in a filing to the stock exchange.

In a statement, Priceworth observed the February production volume was its best since July 2012, and the scrapping of conventional timber concessions in Sabah in 2010 under a new forestry policy.

"For the last five months, our log production has stayed consistently above 14,000 cubic metres," said Priceworth executive director Richard Koo.

Priceworth has been operating in two compartments within FMU5, and was recently given approval to begin harvesting in compartments 63 and 64A. It also has several other timber concession areas covering 27,900ha.

It noted that FMU5, comprising roughly 89,000 hectares of Class II commercial forest reserves, is to be managed as sustainable forest under a licence expiring in 2097.

"We fully support the aims and objectives of Sabah Forest Department (SFM) which is crucial for conserving and protecting the natural resources of the State for future generations," Koo said, adding Priceworth has transformed over the last 10 years to meet the requirements of SFM.

"Over the last 10 years, Priceworth has invested more than RM100 million in upgraded equipment including eight log fishers which are approved for Reduced Impact Logging (RIL), a forest harvesting technique which helps minimise the environmental impact on forests, soil and water quality," the company said.

 

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