After logging ban in Myanmar, Laos and restricted log felling min Malaysia, Indonesia and other tropical timber exporting countries, Okoumé is vital wood specie that will suffice the emerging timber needs. Resourceful Gabon is an important place for the veneer and sawn timber production with around 50 Indian companies already operating in Gabon SEZ. This is why there have been rise in interest for investment in GSEZ for manufacturing of face veneer, sawn timber and furniture, which was visible at Gabon Wood Show recently held from 20th to 22nd June, 2018 in Libreville, the capital city of Gabon.
The Ply Reporter team visited there and met every stakeholder to find out more on emerging opportunities, challenges in manufacturing, logistic scenario and ease of doing businesses. The visit was focused to meet with hundreds of people who are, face veneer producers, saw millers, furniture makers, forestry people, loggers, officials and key personalities of GSEZ of Olam international.
Gabon’s sustainable forestry ecosystem is providing long term stability in timber availability and sustained supply for the industries operating here. Meeting with production and technical men, machineries suppliers etc, ‘The Ply Reporter’ is presenting a brief ground report from Gabon.
Gabon Forest
Commercial forest harvesting in Gabon began as early as 1892, but only in 1913 was Okoumé, Gabon’s most valuable wood, introduced to the international market. Gabon supplies 90% of the world’s Okoumé also due to
Forestry and timber processing that has been one of the driving sectors of the economy of Gabon. Gabon’s forests covers 22.8 million hectares, i.e. 88% of the country’s land surface. Until 2010 i.e. before ban on export of raw logs, Gabon was the largest exporter of raw wood in the region, and its sales represent 20% of Africa’s raw wood exports. Gabon’s reserves of exploitable timber estimated at 400 million cubic meters which includes 130 million cubic meters of Okoumé.
Okume is a tree in the family Burseraceae, found in equatorial West Africa and mainly in Gabon. It is used decoratively as the top surface veneer in paneling and furniture also used as most suitable for rotary cut veneering. With very harmonious, good bonding performances and good compatibility with finished products, the log quality of Okoumé in Gabon is very high. The first grade is used for veneer and the second grade is used for sawing. Okoumé wood specie at solid timber.
Okoume Rise: Face Veneer And Plywood
With reducing supply of Gurjan face veneer, Okoumé with sustainable supply is emerging as perfect replacement of face veneer for Plywood manufacturing in India because Okoumé veneer provides a consistent colour, texture and good durability for outside use. Till date, 21 Indian companies have started production of face veneer and around half a dozen are in pipeline. Few Chinese manufacturers too have commenced production of face veneer with very high peeling capacity in Gabon SEZ.
As per report, presently Gabon exports 200 - 250 containers of face veneer per month to India Market, which in future is estimated to reach around 800-900 containers per month. But it depends upon demand and the improvement at logistics’ front which will be driving the dispatches to India. Logistics and ground infrastructure is being built which may take some time but veneer exporters are expecting a solution sooner than later.
As on date, the total processing capacity of face veneer unit in Gabon SEZ is around 35,000 cbm per month which may reach to double by mid 2019. Since the timber yield is around 52 percent, thus a major wood waste in veneer peeling unit results in the form of central core of logs that cannot be processed for face veneer in the 0.3 mm to 0.6 mm thickness. The survey to different face units shows that an estimated 15,000 cbm of central core of log is left out without use which in fact is a big resource for core veneers in making plywood. Unfortunately, there is no plywood factory in Gabon SEZ which can use this raw material for making plywood. This raw material i.e. central core of log after face veneer peeling is expected to be available at a very cheap rate between Euro 3 to Euro 5 per cbm which makes the plywood manufacturing a suitable choice in this location. As per discussion with representative of Gabon SEZ, they are extending their best support to the units intending to establish plywood units by offering industrial land on very favorable terms.
In terms of utilization of logs, distribution is skewed towards saw mills which utilises 60%. Around 25% is utilised in veneer production and a small proportion of 8% is utilised for production of plywood. Export volumes remain at levels equivalent to those before the ban on log exports, which suggests that the decision to ban the export of logs would have no significant impact on increasing the production and export of plywood in Gabon.
Okoumé Plywood is a product of very high quality and could be a speciality of Gabon if made that way. Today the supply volumes of Okoumé logs for production of plywood are limited by Sustainable Forest Management, which consists of restricted wood harvesting, allows the forest to regenerate naturally. It also ensures the continuity of Okoumé being available in coming years and decades. The log export ban offers good opportunity for plywood plants located in Gabon where timber availability is not going to be an issue.
The Okoume plywood is a product that can be sold across the globe, though exporting to India does not make sense because of India’s local expertise and plywood availability. Selling Okoume plywood in Europe, US, Middle East and neighboring countries offers an attractive opportunity for Gabon based plants.
The Challenges at Gabon
The sustainable forestry management system and good intend of Gabonese Government are helping the growth for establishing wood manufacturing units in Gabon but there are some challenges facing by industry, among them some are not been solved but some problems needs to be taken care for the further development and sustainable growth of industrialization.
The challenges, which could improve
1. Logistics is a major issue, which is affecting the export volume and service.
2. Shortage of technical men power is halting the production process.
3. Shortage of mechanical men, if there is break down in machineries it takes long time to make it streamline.
4. Cutting and transportation of timber from forest is a herculean task, hence timber industries are mainly dependent on some selected loggers.
5. Gabon is one of the Malaria and Yellow Fever infected country, which creates fear among experts.
The challenges, which are permanent
1. Lack of drinking water problem
2. High inflation of entire food products, living and others utility.
3. Rainy Season at least nine months in a year
4. Language problem
5. Safety
Although, the market of Okoumé Plywood has reduced from 800,000 cbm per year to about 300,000 cbm per year in the last forty years, but it remains a very attractive market because of its price (USD 700-900 per cbm) and which explains high proportions of exports of Okoumé plywood to Europe.
Gabon Efforts For The Industries
After ban on exports of raw logs, Gabonese Republic has embarked on a journey to provide amenable ecosystem and infrastructure to facilitate the processing of timber within Gabon. A new forest law is strictly implemented that emphasizes Sustainable Forest Management (SFM) as the overall approach in the forestry. The Ply Reporter team visited the forest and saw the practices very much towards organized forestry management aiming for sustainability and environment. Undoubtedly, Gabon has low deforestation rate amidst being forests rich full of valuable timber species offering the best prospects for a growth bound sustainable timber industry.
During last ten years, Gabon has taken up big reforms affecting the forest and environment in the country and to attract industries here. In this pursuit, Gabonese Republic in partnership with Olam International Limited, Singapore developed a Special Economic Zone, spread over 1126 ha at Nkok (20 Km from the capital city of Libreville).
The Special Economic Zone at Nkok is managed and operated by Gabon Special Economic Zone (GSEZ) SA which offers land on freehold and lease basis for timber processing industries along with utilities like water, electricity etc. at very attractive terms. As part of its business facilitation role and to ensure unhindered supply of logs to units in Nkok SEZ, GSEZ SA is also operating a log supply chain for units in SEZ, and offer long term contract for assured supply of raw material i.e. logs.