Greenply Industries had stated that they will invest four million euros to increase production capacity in Africa.
According to a company release, the Gabon veneer manufacturing facility, which was established with an initial investment of 11 million euros and has an annual processing capacity of 96000 cubic meters (cbm) of Okoume timber, will receive the fresh infusion to scale up its processing capacity from 3,000 cbm per month to 8,000 cbm.
The plant, located in the NKOK Special Economic Zone, produces Okoume face veneers with thicknesses ranging from 0.2mm to 0.5mm.
'We are always focusing on capacity growth and ensuring resource availability.' 'The firm intends to increase its processing capacity with an extra expenditure of 4 million euros,' said Rajesh Mittal, general director of Greenply Industries.
With a 26% market share in India's organized plywood industry, the business expects to use 55 percent of its total capacity by the end of this fiscal year and 100 percent by the 2020-21 fiscal year.
Okoume timber is seen as a long-term and cost-effective option for resolving the ecological imbalance caused by the massive deforestation of Gurjan trees, which are the major supply of face veneers for the Indian plywood industry. Gabon is one of the few areas in the world where Okoume timber – a natural high-grade hardwood timber produced under the Sustainable Forest Management plan – is abundant. The grade of this naturally resistant hardwood is comparable to that of Gurjan wood.
The plywood company is also active in the sawmilling of Okoume and other hardwood species. At the moment, the hardwoods being sawn are Padouk and Tali. It also intends to begin its own forestry activities to supplement its raw material supply.