FSC® Certified Veneer and Sawn Timber Mill Construction in Laos

About

Mekong Timber Plantation (MTP), a TAFF portfolio company, is a tropical hardwood plantation company responsible for a 24,000 hectare estate in central Laos.  MTP manages more than 18,000 hectares of planted eucalyptus and acacia trees.  It aims to be a leading sustainable plantation forestry business in Asia, with a focus on higher value timber production for regional markets.

Key Initiative

In 2021 MTP began construction on an integrated saw log, veneer, and chipping mill in which will significantly increase market access for the company’s FSC® certified timber. MTP will pursue FSC® Chain of Custody certification for the mill in 2022, which would make it the first FSC® Chain of Custody mill in Laos. Chain of Custody means the ability to trace the wood products along the supply chain to certify they are sustainably harvested, processed, and transported.

The mill will process approximately 150,000 m3 of raw logs per annum, producing 7,500 m3 of sawn timber, 45,000m3 of veneer, and 60,000 gross metric tonnes of wood chips annually.

Impact

Sixty-five percent of wood waste will be used to fuel the mill boilers, with the remainder spread throughout plantations. During construction, the mill employed six MTP employees and approximately 50 contracted employees. When the mill is operational, anticipated for late 2022, it is expected to maintain 90 new full-time direct employees.