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Eucalypt Woodchip Processing in Thailand - Siam Tree Development Co. Ltd.

Sattahip, Thailand


The Siam Tree Development Co. Ltd. is a joint venture of Thai and Japanese investors establishing a Eucalyptus woodchip processing and export facility at Sattahip a port site in eastern Thailand. The log resources for the 240,000 tons/yr capacity are drawn from farm based supplies in a 250 km radius. The chip export is directed to Japan and the Company face competition from exporters in China and Vietnam. Farmers in the supply area are reported eager to plant eucalypt to replace other agricultural crops as cassava, pineapple, and sugar cane as the economics of these crops worsens. Eucalypt is regarded as having good potential as a farm forestry crop. Further, as the impact of industrial development in the eastern seaboard attracts labour to industry, the manpower availability in the agricultural sector deteriorates and a tree crop, with a lower labour demand, has advantages.

Key words: Eucalyptus, Thailand, wood chip, farm forestry.


Siam Tree Development Co. Ltd. (STD) is a joint venture company between Thai and Japanese investors to produce eucalypt wood chip for export. The major shareholder is Itochu Corporation of Japan. The Thai partners are Sahapattana Inter Holding Co. Ltd. (SPI), TTL Industry Co. Ltd., Itochu (Thailand) Co. Ltd. and Thai-Japan Reforestation Co. Ltd. (TJR).

The chip mill is located in the eastern part of Thailand. The raw materials are supplied mainly from the nearby provinces, as Chonburi, Chachoengsao, Prachinburi and Rayong. Details of the company operations are:


December 14, 1990

Capital registration

: 30,000,000 Baht

Type of business

Eucalyptus Woodchip Manufacturing & Export

Head office

54 Harindhorn Tower, 5th Floor

North Sathorn Road, Bangrak

Bangkok 10500, Thailand

Tel: (662)236-5386

Fax: (662)236-5387


121/47 Mu 3, T. Plutaluang

Sattahip, Chonburi 20180

Tel/Fax: (01)321-1828

Operations commenced

April 1992

Capacity of chip mill

240,000 tons/yr.

Is Eucalyptus becoming a new crop selection for farmers?

Though the chip mill has been in operation for only one and half years, we find that the farmers in these provinces are eager - and have much confidence - to plant eucalypt to replace other agriculture crops as cassava, pineapple and sugar cane where prospects are becoming worse, day by day.

Another reason why farmers want to plant eucalypt is concern about the labour shortage problem. This has occurred due to the change from agriculture to industry in relation to the Eastern Sea Board Project, which created a lot of jobs, drawing labour from the farms. The yearly harvesting of crops now faces quite a labour problem.

Thus, eucalypt is more highly accepted as a crop and as less demanding of labour, and has good potential as a new crop selection of farmers. We understand that the most important function of chip mill of the company is to provide a market for the eucalypt growers.

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