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US$17m Modern Sawmill Under Construction - As LWI/ICC Earmarks US$23m Investment For Forest Industry
by Global News Network
05/20/09
Registered Liberian Company, an International Consultant Capital (ICC), a subsidiary of a Liberian-European and American investment company, the Liberia Wood Industry (LWI) is to invest US$23 million in the forest industrial sector of Liberia.
Besides the US$23 million earmarked for the forest industry, the company is investing US$17 million to operate a modern sawmill plant which is nearing completion in Brewersville, few miles from Monrovia. Two large out-put capacities - Horizontal Band Sawmill (over 10,000 M3/Months) and Vertical Band Sawmill (above 5,000 M3) already under construction at the company Brewerville
ICC/LWI has already bided for forest areas, and result of the biding exercise is still pending. While the bidding formality is still pending conclusion completion, an ICC/LWI pre-investment initiative is underway culminating to the modern sawmill plant while ground equipment and machineries costing about US$12, 125,000 are brought into the country; the ICCs Resident Manager Mulbah K. Wilie, discloses.
The Mr. Willie who said the ICC/LWI investment would generate 600 employment opportunities in the country told visiting journalists Tuesday at the companys sawmill site in Brewersville that during the second year of operations, the company will undertake further processing of the sawn timber into value-added products such as molding, doors and door frames, furniture parts, parquets.
Investment plans unveiled
According to the companys Resident Manager, the company will Install 1.2 MW diesel generator to provide energy for the processing facilities and to also supply the surplus energy generate to the national grid, especially for the benefit of nearby communities to the industrial site such as Brewerville City, Lott Carey Mission, Po-river and Virginia.
Already assorted caterpillars, trucks, trailers, pickups and jeeps, generators, and kiln dryers for wood, steam boilers, mechanical tools and spare-parts amongst others at the cost of US$12,125,000 have been acquired with some imported into Liberia. Others a modern sawmill with accessories, forklifts, tractors, lumber jacks and trucks of varying degrees, while landscaping and surface work has taken place at the Brewerville site of the company.
According to Mr. Willie, the company would construct additional two sawmill plants in Southeastern and Northern parts of the country if the company bid is final by the panel to operate a forest of which its was first pre-qualified. He said the idea is to launch similar sawmill plants to locally process round logs.
The objective, Mr. Willie narrated during a briefing at the companys site, is to minimize the exportation of round logs to oversea markets and enable the local market to benefit from locally manufactured products of all kinds. He said at the same time such trend of operation would be creating job for more six hundred Liberians.
The company is aimed at contributing to national social and economic development initiative through sustainable forest industry investment and sustains environmentally-friendly logging, processing, value-adding and marketing operations in the country.
Addressing a major news conference at the end of a two-hour tour of the ICC/LWI facilities and equipment, the ICCs Resident Manager, Mr. Willie, said apart from the first US$17 million sawmill investment, the company intends to invest additional US$23 million in the forest industry upon the approval of its bid by the panel to operate a forest in the country.
This should mean the preparedness by ICC/LWI to invest some US$48 million into the forest sector of Liberia.
Mr. Willie said the sawmill, when completed, would be utilized to manufacture various grades of wood to finished products for both local and international markets, saying that almost 70 percent of the assorted imported machines and equipment are now stockpiled at the companys Brewerville premises, while the remaining shipment is expected in the country as soon the company is giving a forest for operation, having been pre-qualified.
Investment strategy is to add value
According to Mr. Willie, the core of their investment strategy is to add value to Liberian wood products with no intention to export one round log. He stressed that ICC/LWI venture financed by SEALORD LLC in the United States is doing everything to add value to the logging industry.
Several German engineers and skilled Liberian workers were seen at the site working. The engineers are constructing infrastructures including the Sawmill and also training Liberians for future challenges.
According to confirmed report, the LWI signed an agreement with ICC and bought major shares in the company. LWI owns 92.5 percent share in ICC. It is a registered Liberian company and it has been pre-qualified since December 2007 to participate in a large forestry management contract.
According to Mr. Willie, the implementation Strategies of the ICC/LWI management include participation in competitive bidding for acquisition of forest concession, securing resource-base that will sustain operations and investment, giving preference to the employment of Liberians to improve their livelihoods and employing better remuneration system.
He further said the ICC/LWI management would as a matter of strategy, adapt comprehensive occupational health and safety policy within the management operational policies.
Other strategies are to comply with all management guides, regulations and codes that will contribute to sustainable forest management; undertake certification of forest and the timber products to enhance free access to European and other international timber markets, use appropriate logging equipment and techniques with minimum impact and undertake post harvest inspection of logged areas to assess compliance with plans, rules, codes and standard and to inform next operational planning.
During the first year of round log production, the company will locate two-medium out-put capacity semi-static band saw (3,000-7,000 M3/Month) for primary processing within the proximity of the logging site to utilize and undertake pre-primary processing of logs that will not be necessary to be transported to the Large Static Sawmill and logs that are left over from bucking at the various bush landings.
This is also intended reduce transportation cost of production, and create more jobs, Mr. Willie explained
The sawmills under construction
Two large out-put capacities - Horizontal Band Sawmill (over 10,000 M3/Months) and Vertical Band Sawmill (above 5,000 M3) already under construction at Brewerville, near Monrovia. The large static band sawmill facility will have at least 5 chambers (>25 M3 per cycle) Kiln Dryer for seasoning of sawn timber products from both the two-medium capacity and the large capacity mills.
Process at least 50% of the first year production high grade quality logs into sawn timber. This will be increased in the second year by 20% with subsequent increase of 30% in the third year of operation. This means that the large out-put capacity sawmills will be under-utilized during the three-phase operational period.
In order to fully utilize the capacity of the mill, the management will purchase logs from other producer (most likely the Timber sale Contracts holders) who might not put up processing facility. Two large out-put capacities Horizontal band sawmill (over 15,000 M3/Year) and vertical band Sawmill (above 7,000 M3) already under construction at brewerville, near Monrovia.
The large static band sawmill facility will have at least 5 chambers (>25 M3 per cycle) Kiln Dryer for seasoning of sawn timber products from both the two-medium capacity and the large capacity mills.
During the second year of operations, the company will undertake further processing of the sawn timber into value-added products such as molding, doors and door frames, furniture parts, parquets, etc. In this case at least 25% of sawn timber produced will be converted to value added products mostly for export.
He said at least 60% of all export quality timber produced will be Kiln-dried and all export orientated construction timbers will be chemically treated as may be requested by the oversea customers.Investment policy pre-defined
However, He said the wood treatment will not be limited to export oriented. We will extend this service to domestic market as long as the request and the added-value cost are accepted.
Mr. Willie said company will establish Wood-waste fired boiler for generation of steam and process heat from sawmills waste and wood residues from the forest to supply the large static mill prime movers and the Kiln drying facilities and purchasing at least 30% of logs from other producers.
This he said is predicted upon assumption that the large sawmill will be under utilized due to lack of sufficient raw material (logs) from the contract forest.
Speaking on environmental policy, Mr. Willie said the ICC shall uphold the best policies on protecting the environment. Some of the practices shall include: the protection of forest covers in the sensitive areas, the Soil and its properties as well as water quality and quantity, identify and manage protected and threatened areas, species and habitats within the contract zones, undertake annual quantitative assessment and report on environmental impacts associated with felling, ground skidding. Road constructions and other infrastructures and comply with environmental regulations and management standards, codes and guidelines.
On policy of commercial forestry, the ICC resident manager said the ICC will undertake a well coordinated management plan. The company will pursue the following management plan, provide training of well-motivated work force to enhance Reduced Impact Forest Harvesting and reduce cost f production and market less round logs in bulk (crude logs) and more processed sawn timber and value added products, he said.
According to him, the company will invest in thermoelectric power supply using forest residues and processing waste to reduce fossil fuel cost in the production chain and undertake certification of the contract forest and forest products in order to gain quick access to the international timber market.
For policy on community, he said the ICCs goal shall be the motivation of forest communities to appreciate the value or benefit from forest resources for their full participation, while basic strategic objectives of the policy will include provision of sustainable alternative livelihood opportunities other than timber revenue benefits for forest fringe communities and allowing local communities to identify their development projects before implementation.
He said it will facilitate constant dialogue between the management and the communities members for enhanced resource conflict resolution.
According to him, the policy on forest include protecting the rare, endemic, and endangered species, protect selected areas of special scientific, scenic or ecological significant within the contract forest ecosystem of operations, applying appropriate silvicultural prescriptions to regenerate and restore indigenous species at all areas affected by harvest related activities (landing, skid trails and roads) and monitoring and control all invasive species within the contract area, while at the same time prohibiting the carrying of fire arms and hunting in the contract area.
He said the ICC will respect all legal or customary rights to land or forest as well as respect for cultural, traditional and local values and customs.
The company, he said, will avoid all traditionally restricted and sacred areas such as the Sande and Poro society bushes, farmlands, and downstream damaging/pollution of water bodies, timely address the welfare of the workers and the communities to enhance their livelihood standards and provide equal opportunities and preference for employment without segregation to any community member.
Meanwhile, ICC has promised to be formidable business entity in Liberia with great potential to invest in the forest industry sector of the economy.
Its initial financial and technical investment for the various management systems (Log harvesting, primary processing, secondary processing, and provision of thermoelectric power) will amount to at least US$23,000,000 United States Dollars during year one.
This article found on:
http://theliberiantimes.com/blogs/index.php?blog=2&title=us_17m_modern_sawmill_under_construction&more=1&c=1&tb=1&pb=1 |
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