Barama Company Limited (BCL) will temporarily close its plywood mill at Land of Canaan, East Bank Demerara this week due to the insufficient supply of peeler logs which are required for plywood processing, a company release stated.
The factory will be closed for a few months, the release stated, to allow the company time to accumulate and build up stock of Baromalli, the main species of peeler logs used for plywood processing. Meanwhile, BCL will offer staff the option of transferring to the company’s new sawmill lines at Buck Hall, Essequibo River where it is planning a substantial increase in production.
“This is in line with our corporate strategy to increase value-added production in Guyana and to reduce log exports correspondingly. The company will comply with all the existing laws on worker severance and compensate employees accordingly,” BCL said in the release.
The company has started discussions and negotiations with various forestry companies to purchase similar peeler logs. And these parties will require some time to plan and harvest such logs.
According to the release, Chief Executive Officer of BCL, Peter Ho said that “The decision to temporarily close the plywood facility reflects the severe supply shortfall of peeler logs.” “Our stock of peeler logs has depleted and we will try our best to resume plywood production as soon as we are able to establish sufficient stock. It is very difficult to sustain our business at such low production levels coupled with high operating costs.”
Meantime, the company is engaging customers and informing them of this supply shortfall, while it is also trying to meet outstanding orders and needs of customers by supplying plywood of alternative species, the release added.
Barama has been criticized for not maximizing output from its plywood mill. It was recently slapped with a hefty fine for violations in relation to logging on other timber concessions.
