MIECO : Rolls Out Asia's Single Largest Chipboard Line

Malaysia's largest particleboard manufacturer has boosted it total production capacity to 3,000m3 a day with the commissioning of a new production plant in Kechau Tui near Kuala Lipis in Pahang in March 2005. The company plans to increase its production capacity over 900,000m3 per annum and achieve RM500 million in group turnover when the latest manufacturing plants becomes fully operational by beginning 2008.

SET UP at a cost of over RM300 million, the new plant, which is also the single largest chipboard line in the Asia-Pacific region, will have a maximum production capacity of 640,000m3 a year. At present it is running at 50% capacity, said Mieco Executive Chairman, Datuk Mohamed Moiz J.M. Ali Moiz. With the plants opening, we will have the capacity to increase our exports to new markets such as India, Africa and the Middle East, he said, adding that at least 300 more workers would be employed as the plant moves towards full production capacity.

Mieco Chipboard Bhd is the manufacturing division of the Bandar Raya Developments Bhd Group of Companies. The company was listed on the Main Board of Bursa Malaysia Securities Bhd in 1998. Incorporated in 1972, the company commissioned its first production line in 1976, making it the pioneer in particleboard manufacturing using Malaysian Oak (Hevea brasiliensis) in Malaysia.

From being a plain chipboard producer, Mieco has developed and expanded its product lines to include various value-added products such as decorative melamine faced chipboard, decorative electron beam foil chipboard, decorative polymer faced chipboard, direct post formed board, worktops, laminate flooring as well as DIY furniture carrying the brand name Livin Style. Mieco s particleboard, conforms to international quality standards such as the European Community's BS EN 312 standard, which is applicable to both moisture-resistant and non-moisture resistant boards with E1 and E2 formaldehyde emission levels. The company attained the ISO 9002 Quality Management System certification in 1998 and has subsequently upgraded to the ISO 9001 :2000 in 2002. In 2004, it became the first company in the Malaysian wood panel industry to receive the prestigious BS EN ISO 14001 : 1996 Environmental Management System certification accredited by Lloyd s Register Quality Assurance. In line with this, the company also successfully attained certification for the Occupational Safety and Health Management System 18001: 1999 in March 2005.

Besides the new plant, the group has two other plants, in Semambu and Gebeng in Pahang. Both plants have reached their full combined capacity of 300,000m3 per annum. The plant in Semambu manufactures kenaf (Hibiscus cannabinus) fibreboard. In July 2004, Mieco signed an agreement with Japan s Matsushita Electric Works, Ltd. (MEW) to set up a joint venture to carry out R&D, manufacture, marketing and sale of kenaf fibreboard and kenaf particleboard and their downstream processed products.

MALAYSIA'S DEPUTY PRIME MINISTER, DATUK SERI NAJIB KAZAK (CENTRE) VISITING MIECO'S NEW PLANT. HE IS ACCOMPANIED BY DATUK YONG (LEFT), PAHANG CHIEF MINISTER, DATUK SERI ADNAN YAAKOB (RIGHT) AND DATUK MOHAMED MOIZ (PARTLY HIDDEN) Mieco's Executive Director, Datuk Yong Seng Yeow said the kenaf fibreboard plant has been running in two shifts since July and will be running in three shifts by year-end. The kenaf fibreboard, manufactured for Matsushita currently, is expected to be exported to other countries by end-2006.

Datuk Yong said about 40% of Mieco's revenue comes from its overseas markets, and the remaining 60% from Malaysia. The company exports particleboard products to over 20 countries such as China, Taiwan, Japan, South Korea, Hong Kong, as well as the South-East Asian, Australasian, Indian subcontinent, the Middle-Eastern and African countries.

"Our presence in Africa and India's subcontinent is still small but since they are attractive markets, we plan to increase sales there soon. India, for instance, is a growing market with an expanding middle-class group. Its annual demand for wood-based products is close to one million m3. As such, it is worthwhile to develop the market," said Datuk Yong, adding that Mieco's export to India's subcontinent last year was about 1,000m3 a month.