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JAYA TIASA HOLDINGS BERHAD
14
In FY2014, the plywood division contributed about 27%
to the total revenue of the Group. Plywood sales volumes
decreased by 19% YoY, while the average selling prices
increased by 7%. During the year, Korea and Taiwan
emerged as our two largest export destinations, accounting
for 33% and 30% respectively of total plywood exports of
the group in US Dollar terms. Other major exports markets
were China / Hong Kong and Japan.
The market for plywood has been challenging ever since the
economic downturn. To maximize our revenue and profit as
well as to maintain our existing markets, we maintained our
strategy in producing more high value products.
South Korea remained our largest export destination by
accounting for 33% of export value. The imposition of anti-
dumping duty for the last few years did not significantly
impact our business.
Taiwan was our second largest export market after South
Korea accounting for 30%of the Group’s total sales. Despite
the structural change in consumption pattern in Taiwan, we
managed to find our niche by selling good quality product
with various sizes tailored to the market demand.
Plywood Outlook and Strategy
Demand for plywood is expected to improve gradually in
line with economic recovery in our key markets. Our focus
will be on our largest import country, South Korea. Recent
announcement from the Korean Ministry of Strategy and
Finance reducing the anti-dumping duty rate from 6.43%
to 3.08% is favorable to us. This is a positive as it grants us
added competitive edge in our pricing strategy.
In tandem with this renewed optimism, the group is
adopting a dynamic strategic approach in an increasingly
competitive global environment, taking into account the
scarcity of resources, the volatility of foreign exchange rates
and volatile crude oil prices. The group will strengthen its
current measures to maintain and enhance its competitive
edge, and these include harnessing its existing production
technology towards improving operational efficiency and
product quality, and being innovative in producing more
value-added products for niche markets to enhance margins.
chairman’s statement (cont’d)
Plywood