09/01/06 Berjayapak turns 'leftover pieces' into toys

(Business Times (Malaysia) Via Thomson Dialog NewsEdge)THE next time you buy educational wooden toys from any outlet of the world's biggest furniture retailer that is headquartered in Sweden, you will be proud to know that they are made in Malaysia.

A pallet-making company located at the Furniture Industrial Estate in Sg Bakap, Penang, makes these toys from "leftover pieces" of sawn timber. The Ooi family, who are founders of Berjayapak Sdn Bhd, believe in innovation and thrift.

"In product development, we must constantly find new use from existing resources that will satisfy customers' needs," chairman Ooi Chong Heng told reporters during a recent plant visit.

This year, Berjayapak expects to sell some RM1.8 million worth of educational wooden toys to the Swedish furniture retailer. Last year, Berjayapak supplied RM1 million worth of that product, same as in 2004.

The wooden toys are the by-product of Berjayapak's pallet-making business.

"Our main income comes from making wooden, plastic and paper pallets," Ooi said.

Established in 1984, Berjayapak is a one-stop-service provider for palletising, crating, packing and moving. In making the pallets, these products are heat treated, kiln-dried and fumigated to international shipping requirements.

Berjayapak posted RM15 million in revenue in 2004, up 15 per cent from RM13 million in 2003.

Despite high diesel and timber prices in recent months that have eaten into Berjayapak's profit margin, Ooi said the company is hopeful of recording another 15 per cent in revenue growth to RM17.5 million for 2005.

"Malaysia's economy is an export-oriented one and many exporters will need to pack and ship out their products in a safe and hygienic manner.

As long as Malaysia's exports grow, we will grow accordingly," Ooi said.

Being a member of the US-based National Wooden Pallet and Container Association has its benefits. Berjayapak has long since complied with the United Nations Food & Agriculture Organisation's international standard for phytosanitary measures No.15 (ISPM 15), which requires all solid wood packing material thicker than 6mm to be heat-treated to 56C for 30 minutes or fumigated with methyl bromide.

This requirement, enforceable since September 2005, is to prevent cross border of invasive species of wood-born insects that can caused extensive damage to indigenous plant species in China, Japan, Brazil and the US.

"Malaysian exporters can be rest assured that when we pack and move their products to the seaport, we comply with the latest regulation at all export destinations," Ooi said.

He said the company is investing RM20 million to set up a 60,000 sq ft presswood pallet factory.

"It will be situated next to our current factory in Sg Bakap," he said.

In maintaining a cleaner environment at its existing 240,000 sq ft factory, the company recently spent RM15 million to install a central vacuum to suck the saw dust into a boiler that fuels its heat-treating facility.

"In making the pallets and crates, our factory generates eight tonnes of wood waste per day. So, we decided to spend some money to provide a cleaner environment for our 150 workers and be more efficient at the same time," Ooi said.