Initiatives for Priority Markets

Global Markets
In addition to the sales of MDF produced in Malaysia and New Zealand, the industrial materials business in the global markets
expands the sales by the North American wood materials with a focus on the veneers and LVL produced in Canada and the USA.
The building materials business has been deploying interior doors in China, which has a huge market size, and Indonesia, where
housing demand expansion is expected.

Global Markets: Trends in Net Sales

1000(¥100 million)
800

Industrial materials business

Building materials business

Development by MDF+496

Malaysia
Tree species: Hardwood

Tree species: Softwood

Brown-colored MDF that effectively uses wood offcuts from theplywood/lumber plants in Malaysia. It is used for the flooring substrates
that require excellent water resistance and dimensional stability.

White-colored MDF that uses plantation Pinus radiata timber in New
Zealand. It is used for the base materials for furniture and building
materials that require lightness and smooth surface.

Characteristics

Characteristics

DSK is a mother plant for MDF, which produces highvalue-added special MDF, etc. They are in the two-plantsystem with DMR after M&A in 2005. They developed MDF
that uses 100% plantation acacia timber and proceed withthe distribution of new applications.

MDF that is globally recognized with the CUSTOMWOOD
brand. In addition to the product development that corresponds
to the customer needs, such as ultra-lightweight MDF, DNZ
and DSL take advantage of their respective characteristics ofthe production lines and optimize their production items.

200Second afforestation area

+3+710+15192

1020
2016
Results

BenchmarkGP25 1st Stage

2023
Forecast

GP25 2nd Stage2026 (Fiscal year)
Goals

GP25 3rd Stage

Veneer

CIPA Lumber Co., Ltd. (CIPA)

Third afforestation area

Foundation: April 1968 → Purchased the company in June 2019
Location: Canada (Delta, British Columbia)
Business Lineup: Veneer manufacturing and sales

8,000
6,000
4,000

LVL

2,000

2003

2011

2006

2016

Foundation: January 1998 → Purchased the company in June 2019
Location: The U.S.A. (Burlington, Washington)
Business Lineup: Structural LVL and I-Joist manufacturing and sales

2021 2022(Fiscal year)

On June 22, 2022, PWT announced the agreement on acquisition of the housing structural material
manufacturing business (Engineered Wood Products Business) from Louisiana Pacific and the capitalincrease plan, which was accepted by Itochu Corporation, with the acquisition. The company wastransferred from a consolidated subsidiary to an equity method affiliate on August 2022.

MDF
DAIKEN NEW ZEALAND LIMITED (DNZ)［ 海外地域別売上高構成比 ］
中国

Sales office7%

9

Industrial materials business
Building materials business

東南
アジア%

721億円

北米

61%

20

Doors, flooring, andconstruction materials

DAIKEN Industries (Ningbo) Corporation(China/from 2002)

Business Flow

DAIKEN MIRI SDN. BHD. (DMR)
Foundation: September 1996 →Purchased the company in February 2005
Production Capacity: 120,000 m3/year
Acquired Certificate: JIS A 5905, PEFCCoC CARB, and EPA TSCA Title VI

DataExpansion with wood materials in North America
We will proceed with the expansion into the world’s largest wooden housing market with the North American wood industrial materials
business by CIPA, a Canadian veneer plant that we jointly invested in with ITOCHU Corporation who is in a relationship of capital allianceand PWT, an American LVL plant, as a key axis.

MDF

Indonesia office

その他

オセアニア%

Production baseFoundation: 1976 → Purchased the company inFebruary 2009
Production Capacity: 210,000 m3/year
Acquired Certificate: JIS A 5905, FSC CoCCARB, and EPA TSCA Title VI

2021年度4%

Foundation Supporting Value Creation

0

PACIFIC WOODTECH CORPORATION (PWT)

DAIKEN (Shanghai) Corporation(China)

Singapore Branch

2022
Results

2019
Results

Strategy for Value Creation

First afforestation area

665
605

600

Tree planting activity in Malaysia（ha） [Cumulative afforestation area in Sarawak, Malaysia]
10,000721

400

New Zealand

Toward the realization of stable procurement, we started acacia tree planting inSarawak, Malaysia, from 2002, and thecumulative afforestation area is 9,500
ha or more. With a view to increasing
the ratio of plantation timber, which is
the wood material used for MDF, fromthe current ratio of approximately 50%
to 100% in fiscal 2026, we will conductsustainable raw material procurement.

+26

0+5

Other

Daiken Group's Value Creation

With the system of four plants in the two countries of Malaysia and New Zealand, we are engaged in the production of MDF for which wood
offcuts from timber are effectively used. By taking advantage of tree species and the characteristics of the production lines and cooperation,
we will promote the distribution of products having new value and the further expansion of the sales channels in global markets.

Engineering business

Veneermanufacturing(CIPA)

LVL
Manufacturing(PWT)

CuttingLaminate and glueveneers together

I-Joist*Manufacturing(PWT)

Major applications in the North American housing market

Door

PT. DAIKEN DHARMA INDONESIA(Indonesia/from 2015)

MDF

MDF

DAIKEN SARAWAK SDN. BHD. (DSK)
Founding: May 1994
Production Capacity: 120,000 m3/year
Acquired Certificate: JIS A 5905,
PEFC CoC CARB, and EPA TSCA
Title VI

39

DAIKEN SOUTHLAND LIMITED (DSL)
Foundation: November 1993 →Purchased the company in April 2018
Production Capacity: 195,000 m3/year
Acquired Certificate: JIS A 5905, FSC
CoC CARB, and EPA TSCA Title VI

Veneer

LVL

Structural LVL for homes

I-joist installed as the joist in a home

*I-Joist: A structural material, which is a composite material of Oriented Strand Board (OSB: a structural wooden board made by laying thin rectangular wood pieces cut from raw wood upon one
another in such a way that the surface layer and core layer cross at right angles in the fiber direction and are then compressed at high temperature), LVL, and timber.

40