Basic Policy of Overseas Plantation Utilization

Properly managed forests, which are planted regularly and logged based on annual growth provide sustainable timber and hold promise in mitigating our dependence on natural forests.

At overseas plantations where growth of woods are faster than in Japan, the Sumitomo Forestry Group operates the plantation business well-thought-out for local communities and biodiversity and proactively procures products made with woods harvested from the plantations, and thereby develops sustainable supply chains.

Overseas Plantation Data (Unit: ha)

Country Name of Plantation Managed Area Total Plantation Area for Social Forestry Planted Area Logged Area
Indonesia PT. Mayangkara Tanaman Industri (MTI) 104,664 0 2,628 2,409
PT. Wana Subur Lestari 40,750 0 3,755 3,336
PT. Kutai Timber Indonesia (KTI) 4,889 6,179 1,276 0
Koperasi Serba Usaha Alas Mandiri (KAM KTI) 0 1,005 0 0
Koperasi Bromo Mandiri KTI (KBM KTI) 0 207 0 0
PT. Rimba Partikel Indonesia (RPI)*1 0 2,374 0 0
Other*2 3,633 332 528 0
Subtotal 153,936 10,097 8,187 5,745
Papua New Guinean Open Bay Timber Ltd. (OBT New Guinea) 31,260 0 475 243
New Zealand Nelson Pine Industries Ltd. (NPIL) 5,134 0 66 88
Tasman Pine Forests Ltd. (TPF)*3 30,966 0 623 758
Subtotal 36,200 0 689 846
Total 221,396 10,097 9,351 6,834

※1 he number of seedlings distributed at RPT is estimated to convert as land area. Vegetation determined to have withered is included in the harvest

※2 Others includes data of environmental reforestation for social contribution and consulting business for other companies

※3 TPF completed the acquisition of the plantation area in June 2016

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Distribution of Free Seedlings and Buy Back Guarantee of Logs

Indonesian Group companies KTI and RPI distribute free tree seedlings to local communities guaranteeing that the companies will buy round logs as raw materials at the current market value once the seedlings grow into harvestable woods. In November 2015, KTI's aforementioned operations were recognized by the Indonesia Ministry of Environment and Forestry and awarded the Minister's Prize for contributing to local communities by generating stable income while protecting communal societies as well as environments.

Local KTI Staff Celebrate teh Minister’s Prize

Local KTI Staff Celebrate teh Minister’s Prize

Number of Seedling Stocks Given to Indonesia

Company FY2017 Results
KTI 750,000 trees
RPI 240,000 trees

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Promoting Certification of Forests Together With Local Communities

KTI organized KSU ALAS MANDIRI KTI (KAM KTI)*, which is a community plantation cooperative association. In 2008, KTI obtained the first FSCTM-FM certificate for the 152-hectare plantation and has expanded its certification to 1,005 hectares in 2015. Koperasi Bromo Mandiri-KTI (KBM KTI)*, which is a second reforestation cooperative with the same certification, acquired a certificate for 206 hectares in January 2017 and began extracting raw wood. The area of certified forest has reached a total of 1,211 hectors. These certified forests will strengthen the manufacture and sale of products with high environmental value based on a growing supply of Falcata (Albizia falcataria) materials.

* KAM KTI: FSC-C023796, KBM KTI: FSC-C133562

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Sustainable Plantation Business by Leveraging Forestry Certification System

Of approximately 30,000-hectare plantation owned and managed by a Papua New Guinean company, OBT*, about two-third, equivalent to 20,000 hectares, is certified with FSCTM. Under the goal to plant on the 500-hectare land a year, OBT practices sustainable forest management that lays basis for communities and environment to function in harmony. The area planted in fiscal 2017 was 475 hectares.

In addition, Sumitomo Forestry Group is acquiring FSCTM-FM certificates for all of its forest areas, including the roughly 30,000 hectares that expands the plantation business of TPF* (Tasman Pine Forest); New Zealand and the 5,000 hectares of forest owned by NPIL. TPF practices sustainable forest management that lays basis for communities and environment to function in harmony by planting roughly 900 hectares of forest each year.

* OBT: FSC-C103694, TPF: FSC-C132002

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CSR