CSR Information

Using Overseas Plantation

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
Country Plantation Business Partner Managed Area Logged Area Planted Area
Indonesia PT. Mayangkara Tanaman Industri (MTI) 104,664ha 2,141ha 1,829ha
PT. Wana Subur Lestari (WSL) 40,750ha 3,366ha 2,722ha
PT. Kutai Timber Indonesia (KTI) 10,260ha 114ha 1,932ha
PT. Rimba Partikel Indonesia (RPI)*1 2,604ha 684ha 127ha
Others*2 3,633ha 0ha 663ha
161,910ha 6,305ha 7,273ha
Papua New Guinea Open Bay Timber Ltd. (OBT) 31,260ha 306ha 429ha
New Zealand Nelson Pine Industries Ltd. (NPIL) 5,134ha 78ha 180ha
Tasman Pine Forest Ltd. (TPF) *3 30,966ha 828ha 398ha
Total 229,270ha 7,517ha 8,280ha
  • *1 The 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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Actively Using Plantations and Certified Materials for Wooden Boards

Sumitomo Forestry has set a ratio of products that use plantation trees and certified timber from the procurement of import wood board products such as plywood as a 2020 target and it strives to expand this business. Plywood that uses 50% or more plantation timber, FSC-certified or PEFC-certified timber is marketed as Kikorin Plywood, and some of its revenue is invested in plantation businesses in Indonesia.

Plantation-derived timber
Panel ratio
(FY2020 target)

At least 33

Plantation-derived timber
Panel ratio
(FY2016)

25.1

Sales of Kikorin Plywood
2011 2012 2013 2014 2015 2016
31,500m³ 36,700m³ 31,100m³ 31,900m³ 28,100m³ 30,200m³

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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.

Number of Seedling Stocks Given to Indonesia
Company FY2016 Performance
KTI 3,290,000
RPI 800,000

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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. 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.

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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 2016 was 429 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 600 hectares of forest each year.

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Toward the Future

The balance between the international supply and demand is estimated to become even tighter due to limited crude timber produced in a sustainable manner as demand for crude wood increases because of the growing population and economic growth of developing countries. Sumitomo Forestry will improve breeding and cultivation technologies and promote elite tree development to maximize the value of overseas plantation forests with the purpose of building plantations that bring long-lasting and stable profits and pass down the global environment to the next generation.

KTI will also promote the expansion of plantation forests through direct corporate management in addition to the free distribution of seedlings to local communities. We will expand stable and sustainable procurement sources of plantation forests based on the forest management that we have cultivated up until now which is friendly to both local communities and the environment.

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CSR Report2017