Sumitomo Forestry establishes Vietnamese particleboard subsidiary

Japan’s Sumitomo Forestry has established a particleboard manufacturing subsidiary, Vina Eco Board, in Vietnam, which is said will have an annual production capacity of 250,000m3 and employ around 200. Commercial production is scheduled April 2012.

The plant, in Long An Province, is jointly owned by Sumitomo Forestry and Sumitomo Forestry (Singapore), which each have a 50% shareholding, and represents a capital investment of US$45m.

Sumitomo said the particleboard plant would provide the company with a comprehensive wood product supply structure for the Vietnamese market as it is also expanding Vietnamese sales of MDF, manufactured in New Zealand and Australia, and of logs from Open Bay Timber in Papua New Guinea.