Several Indian plywood firms are considering building up the business in Gabon, which has been an attractive investment destination for the wood sector in recent years, according to an ITTO report on the tropical timber market.
Africa's Gabon has emerged as a new veneer-producing area, following Myanmar, Laos, and Vietnam. After Greenply Industries announced its plans to build a veneer production factory in Africa, many wood industry businesses began to explore Africa as an interesting investment location.
Many Indian plywood firms are seriously contemplating setting up operations to produce veneer. Two firms in Gandhidham and one in Vishakhapatnam are exploring establishing units in Gabon's Special Economic Zone (GSEZ), which offers several business opportunities.
According to the International Tropical Timber Organization, these firms should not have any supply issues, since Africa's harvestable forest is perfectly capable of delivering raw materials to veneer makers.
Over 20 Indian investors have already established in the GSEZ with sawmills, kiln drying facilities, furniture, veneer, and plywood production plants, proving that Indian wood industry companies are nothing new in Africa.