A Taiwanese entrepreneur this week announced plans to expand his timber plantation in the Kingdom by 5,000 hectares.
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Lu Chu Chang, chairman of Cambodia Cherndar Plywood Company and the association Cambodia Timber Industry, owns large plantations in Kampong Thom province and supplies wood and wood by-products to local furniture manufacturers.
The businessman this week held a meeting with Agriculture Minister Veng Sakhon to discuss his expansion plans.
Since 2017, Mr Lu grows a variety of trees, including acacia, teak, and eucalyptus, on a 2,000-hectare plantation. His company also manufactures furniture.
“We have invested about $2 million, including establishing a research institute for plants hybridisation to ensure the quality of our timber,” he said, adding that plants take up to six years before they can be harvested and that each hectare yields about 150 cubic metres of timber.
“With the ministry’s support and help, the company’s expansion plans will be successful,” he said.
Minister Sakhon urged the company to work closely with the provincial forestry administration in its new project.
“We welcome this initiative and will cooperate with the company because our goal is to promote growth in the timber industry and make it more competitive,” he said, noting that planting trees helps fight deforestation in the country.
In April, Beijing Fushide Investment Management Ltd and East Consulting Management Ltd also announced plans to invest in Cambodia’s timber industry during a meeting with the minister. The companies aim to export the wood to China.
According to the Ministry, from January to June, five local companies exported furniture abroad, while three obtained licences to process wood.