CenturyPly discusses proposal for additional MDF facility

The plywood and veneer producer, which has an existing MDF operation, said in an investor statement that its subsidiary Century Panels Ltd had considered a proposal at a June board meeting to set up a new unit in the state of Andhra Pradesh.

The investment is thought to be in the region of €57m. Century Panels said the new plant would have a proposed capacity of 231,000m3 with a timetable of coming on line in 2023-24.

The company said its reasons for establishing the new plant in Andhra Pradesh included increasing demand for MDF, proximity to raw material sources, availability of personnel and tax benefits under Section 115BAB of the Income Tax Act.

Century Panels’ existing consolidated capacity for MDF production is 198,000m3, excluding the proposed expansion of 132,000m3 per year at the Hoshiarpur facility announced in February.

CenturyPly’s last financial update for the quarter ended March 31, 2021 showed Q4 represented the best ever results for the company, with EBIDTA margins at 17.7%.

“All business segments have done well and Laminate has done exceptionally well due to reduced cost of raw-material,” it said.

On the balance sheet front, the Company said it had now practically become debt free.

Its Gabon unit started commercial operations in February.

“As we all are aware second wave of Corona has again created havoc in the country and has substantially impacted sales and profitability for April, May and even June,” the company added.

“We again see future with optimism and hope that everything will turn normal very soon.”