Le Tree Holdings (E6R) Annual Reports

Commencing its operations in 1978, Samko Timber Limited and its subsidiaries ("Samko") is today a leading timber processing group of companies in Indonesia. Over the past 40 years, Samko has focused extensively on developing our research and development, management, processing, logistics, and distribution capabilities so as to achieved a competitive edge over other competitors. Samko has developed a strong business and operating model, enabling Samko to continuously expand the group processing capacity and maintain sustainability in production. Samko's strong experience has helped the group gain success and grow steadily amid the changing business environment. The organic expansion in the group contributed a total production capacity of more than 850,000 cubic metre annually, allowing Samko to be a major engineered wood manufacturer in Indonesia and one of the largest globally. Samko produces various sizes and grades of processed timber products, which comprise principally of primary processed timber products such as primary plywood, laminated veneer lumber, medium density fiberboard and piano parts. It also produces a wide range of secondary processed timber products such as processed plywood, truck body components and solid wood moldings. Its products also include Forest Stewardship Council certified logs. In addition, Samko manufactures several types and grades of chemical glues primarily used in the manufacture of its processed timber products. Apart from its domestic market Indonesia, Samko's products are sold to customers in various countries and territories, including Japan, the Middle East, South Korea, South East Asia, Europe, the U.S. and Australia. Samko's production facilities include six timber processing plants in Sumatra, Java and Sulawesi. 10 satellite veneer plants in Java and Sumatra and one chemical glue facility in Sumatra. Samko has approximately 450,000 hectares of natural forest concessions and approximately 125,000 hectares of industrial forest plantations. It obtains the logs for the production of its processed timber products from natural forest logs purchased from third party log suppliers and plantation logs purchased mainly from community forests in Java and Sumatra.