Japan's Sojitz plans sales expansion of Chinese poplar LVL

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Sojitz Building Materials Corporation (Tokyo) will expand sales of Chinese made poplar LVL. Poplar LVL is one of strategic items of Sojitz. Current monthly sales volume is 4,000 - 5,000 cbms then target in 2017 is 10,000 cbms. About 3,000 cbms are for fixture material and 1,000 cbms are for crating so far.

Sojitz started handling poplar LVL since 2004. Supply sources are two plan ts of Taian Huihao Timber and Huaian Hui Hao Timber of Hui Hao Timber group then another plant of Jiangsu Fuqing Wood. They are in Jiangsu and Shangdong province. All those plants have acquired JAS certification for fixture use and two plants have JAS cer tificate for structural use.

Products by Huaian Huihao plant are 100% for Japan market with about 10 years' dealings with Sojitz. Sojitz loaned about $750,000 for renewal of facility of Huaian Hui Hao Timber. Current market of poplar LVL is for stud for condominium, core for interior fittings and crating. Sojitz estimates it holds share of about 10% in Japan.

Sojitz plans to develop market for core of panel on top of current market of stud, brace and ceiling joist. Sojitz will aggressively propose use of LVL for builders and precutting plants. In case they use light weight steel, LVL can be replaced since LVL has cost competitiveness, price stability, dimensional stability and short delivery period.

Sojitz figures that the market of Chinese LVL will expand to 600,000 cbms in 2017 as compared to current 440,000 cbms. It also considers capital investment on Chinese plants if the market expands as much as it figures. Basic order unit of sales is one container but it will market small volume out of the inventory at major ports like Osaka, Nagoya and Hakata.

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