Limbang Trading (Limbang) Sdn Bhd ("LTL")

Limbang Trading (Limbang) Sdn Bhd is a 100% owned subsidiary of PanGlobal Bhd. The company was incorporated on 17 February 1967.

LTL is involved in the extraction of logs, sawmilling and manufacturing of veneer. The company’s timber concession is issued by the Ministry of Forestry Sarawak for harvesting of timber resources in the area of Limbang Valley Stateland Forest, Fifth Division of Sarawak. The concession covers an area of 457,938 acres (185,327.5 hectares) and was originally granted to LTL in 1949.

Logging

LTL's concession covers an area consisting of virgin area, re-entry area and work-out area. The commercial types of timber that are available within the concession area are meranti, kapor, keruing and selangan batu and mixed light hardwood. LTL does not undertake the timber extraction and marketing activities itself but has instead contracted out the entire logging, sawmilling and veneer production functions to a contractor.

Logging is carried out in a cyclical manner whereby the forest under the concession is divided into 25 coupes. Each coupe is worked on for a period of 1 year thereby establishing a 25-year cycle for the entire concession period. This is to promote sustainability of the forest whereby the trees that can be felled within each coupe must be of a prescribed minimum girth in order to preserve the young trees and allow it to develop during the next 25 year cycle period.

The forest under the concession consists of a mix of virgin forest and re-worked areas and has a higher concentration of Meranti trees. This hardwood species is considered highly valued and one of the more sought after species of tropical timber. Based on the survey done by Jordan Lee, Jaafar and Chew Sdn. Bhd., more than half the trees in the forest are Meranti and the entire composition is made-up as follows:

Species   Virgin Forest   Re-entry Forest

Meranti   65%   58%     Kapor   12%   9%     Keruing   4%   4%     Selangan batu   8%   14%     MLH   11%   15%

Sawmill

LTL's sawmill is located at the Medamit Log Pond for easy transport of the logs down river from the concession. The sawmill was completed in August 1997 and covers and area of 6,527 sq meters. It has a monthly production capacity of approximately 500 m3 working on an 8 hour shift. It is currently operating at approximately 60% capacity. The various species of timber that are processed here includes Meranti, Kapor and Selangan Batu. The sawn products are exported both locally and regionally.

Veneer

LTL's veneer factory is located at Limbang Industrial Estate and was first built in 1982 and is situated within the Limbang Industrial Estate, which is located near the concession area. The sawmill has a production capacity of 1,770 cubic meters of sawn timber per month and consumes an estimated 50% of the logs extracted from LTL’s forest concession. It is currently operating at 90% capacity. All the output is exported to regional countries.