Ta Ann Holdings Bhd plans to ride on the recovery of plywood prices by diversifying into new markets in Europe and the Middle East this year (2008), while reducing its traditional exports to Japan. Japan currently represents about 97% of Ta Ann's total exports.
The rationale for the diversification was due to Ta Ann's bad experience following the collapse of the Japanese housing starts in 2006-2007 when changes in regulations had resulted in the lack of new housing development in the country.
Ta Ann would continue to export to Japan but at a lesser volume as the country was still the biggest market for Malaysia's timber sector.
On Ta Ann's joint venture with Sarawak's Land Custody Development Authority for paddy cultivation, the group was waiting for the approval from the relevant authorities. Ideally, the group would be looking at cultivating about 4,000ha for paddy and to operate a rice mill. The Sarawak state government recently said it has allocated 12.3 million ha of land to be transformed into the country's next rice bowl state.
3 hours ago
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