PT. Kutai Timber Indonesia (KTI), a production site in Indonesia, has been working to build a system for sustainable forest management in cooperation with local plantation cooperative associations to heighten the ratio of plantation timber used as raw materials.

KTI also began reforestation with fast-growing trees such as Falcata (Albizia falcataria) in 1999. With the system of "social forestry", KTI has aimed to support the environment, community and economy by distributing seedlings to local residents for free to plant on the lands they own and promises to purchase timber when the trees are mature at its market value. In addition, the KTI Reforestation Cooperative supported by KTI (KBM KTI)* has acquired the FSC-FM certification for forests owned by KTI (KAM-KTI)^*.

In the future, KTI will strive to expand the manufacture and sales of products with high environmental value by expanding the area of certified forests and procuring sustainable timber in order to fulfill the requirements of many of our business partners.

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

PT. Sinar Rimba Pasifik uses sustainable timber that takes into consideration the environment and at the same time, manufactures high-quality wood interior materials (floors, stairs, counters, etc.) of a consistent design and supplies products primarily for Sumitomo Forestry Home houses. The timber used as the main raw material procured for these products is solely plantation timber or certified timber.

In fiscal 2019, approximately 60% of our overall timber used was imported from North America, and all of the imported timber from North America is certified timber based on American Hardwood Export Council (AHEC) or Quebec Wood Export Bureau (QWEB). The remaining 40% of our overall timber used is materials purchased from a forestry company in Indonesia (Perum Perhutani), all of which are materials that have received SVLK (Sistem Verificasi Legalitas Kayu) certification.

We will continue to pursue sustainable timber and manufacture and sell high-value-added products that use verified as legal and sustainable timber.