At the signing ceremony (Photo: VNA)HCM City (VNA) – Vietnam’s Eastwood Energy JSC and Sweden’sCellMark Group signed a long-term contract in Ho Chi Minh City on August 8 tosupply wood pellets to the Japanese market.
Under the contract, the first of its kind inked by the two sides, at least300,000 tonnes of wood pellets will be shipped to Japan each year as from 2021.
Pham Trung Cang, Chairman of Eastwood Energy, said Vietnam has huge potentialfor wood pellets production, adding that with a wooden furniture market worthabout 20 billion USD, the production of pellets from by-product of woodprocessing will bring about many opportunities to businesses.
Eastwood Energy aims to export over 500,000 tonnes of wood pellets to theRepublic of Korea (RoK) and Japan in 2019, and at least 300,000 tonnes to theJapanese market alone in 2021, he said.
According to Cang, wood pellets exported to Japan must satisfy technicalstandards set by the picky market and be certified by the Forest StewardshipCouncil that requires businesses and consumers to identify, purchase and usewood, paper and other forest products made with materials from well-managedforests and/or recycled sources.
Craig Jackson from CellMark said Japan is expected to overcome the RoK tobecome the largest wood pellets consumer in Asia in 2021 and its demand maydouble that of the RoK in 2023.
Last year, CellMark purchased 324,600 tonnes of wood pellets from EastwoodEnergy, up from over 19,800 tonnes in 2015.
In Vietnam, the Swedish group is one of the pioneers in promoting the export ofwood pellets, accounting for 25 percent of Vietnam’s total wood pellet exportvolume last year.
The group is seeking Vietnamese suppliers of this product for the Japanesemarket on a long-term basis.-VNA
VNA
