TIMBERWELL BERHAD was incorporated as public company in Malaysia under the Companies Act 1965 and deemed registered under the Companies Act 2016 on 13 May 1996. The Company was subsequently listed on the then Second Board of Bursa Malaysia Securities Berhad on 16 May 1997, where it offered for sale of 6,000,000 Ordinary Shares of RM1.00 each.
The Company is a licence-holder of the Sustainable Forest Management Licence Agreement 06/97 (“SFMLA”) granted by the State Government of Sabah covering an area of 71,293 hectares of natural forest in the Lingkabau Forest Reserve, Forest District of Kota Marudu, Sabah (“License Area”). Under the agreement, the Company has been granted the permission to plant, rehabilitate and harvest timber logs within the license area of 100 years commencing on 10 September 1997.
On 12 April 2018, the Company and the Chief Minister of the State of Sabah had entered into a Supplemental Agreement to amend the SFMLA dated 10 September 1997. The amendments involve rezoning New License Area, Rezoned Area and Excised Area. The New License Area had indicated an increase in the Industrial Tree Plantation area may enhance the Company’s long-term prospect as it will enable the Company, to increase its production capacity and area for planting. The Group operates under the following business units:-
▸ FORESTRY DIVISION
Overseeing the timber harvesting and forest regeneration activities of the Group in compliance with the Annual Work Plan approved by the Sabah Forestry Department. With strict adherence to the principles of sustainable forest management, the Group abides to the practice of comprehensive harvesting plans, compliance with harvesting standards and application of internationally recognized Reduced Impact Logging technique.
The harvested timbers are supplied to other local millers and exported to countries in the Asia Region.
▸ PLANTATION DIVISION
The Plantation activity currently undertaken by the Group is the cultivation of industrial trees of approved species to sustain long-term commercial value of the forest. Under the SFMLA, the Group has committed industrial tree plantation covering a total forest area of 30,125.38 hectares within the Lingkabau Forest Reserve. The indigenous industrial tree plantation species being cultivated includes Laran (Neolamarckia Cadamba), Binuang (Octemeles Sumatrana), Jelutung (Dyera Costulata) and rubber tree. The Company has recently updated the Plantation Development Plan with the inclusion of Mahogany and Eucalyptus as targeted species.
▸ TRADING DIVISION
The activities include timber marketing and trading of timber.
▸ PROPERTY DIVISION
The Property division involves in management and investment and holding of the Group’s properties.