Lionex gets greener

Summary
• Lionex is a subsidiary of the DPW Group.
• It has focused in developing value-added products.
• It supplies five major UK importers.
• It was one of the first Asian exporters to achieve PEFC certification.

Kuala Lumpur-based Lionex (M) Sdn Bhd, a subsidiary of the Dutch DPW Group, has become one of the leading timber and timber product exporters based in west Malaysia – and its environmental credentials are becoming increasingly robust.

Established in 1971 as the purchasing office for the then Fetim/Bekol group, by the late 70s Lionex had evolved into an exporter of mainly Indonesian timber that was inspected and dried in Singapore before being shipped to European markets.

Lionex moved to Kuala Lumpur in the 80s when the flow of wood shifted from Indonesia to Malaysia and in the 90s it was taken over by DPW Group. Along with its KL base, it has a presence in Shanghai, Koto Kinabalu in Sabah and Surabaya in Indonesia and distribution partners in France, Italy, Austria and Dubai.

Sourcing sawn timber from west and east Malaysia, West Africa and South America, since 2000 the company has concentrated on developing value-added products, such as finger-jointed meranti, sapele and angelim pedra, bearing the KOMO Dutch product certification. Finished and semi-finished products for the European construction industry, such as architraves, windowboards, PAR, decking and flooring are also part of the mix.

European exports

The company has rapidly expanded to reach an annual turnover of around US$60m, much of which is a result of exports to Europe, mostly to the Netherlands and France, but also to the UK. The appointment of Frank Teeuwen as European sales director last year signals the company’s intention to expand its business throughout western and eastern Europe.

“We already supply five major UK importers with products ranging from sawn timber from Asia and Africa, to decking and other profiles from Indonesia and laminated, semi-finished products,” said Netherlands-based Mr Teeuwen, who was previously with DLH.

He added that just-in-time deliveries, lead-time reduction and strategic alliances are key factors for Lionex to remain competitive in the European market.

Lionex has a capacity of 70-80 containers per month and, said Mr Teeuwen, it has developed many new products and increased its capacity throughout the years. “High stocks worldwide and falling prices have resulted in reduced stock levels at importers in Europe and more intensive partnerships with Lionex. These strategic partnerships in Europe have resulted in a more optimised and balanced stock position and will ultimately lead into higher returns on investments for our partners,” he said.

In order to achieve its target of just-in-time deliveries, Lionex recently opened a distribution centre in Port Klang and will keep stock in certain major products and dimensions in order to optimise its service as a one-stop shop.

Most of Lionex’s timber products are either MTCS (Malaysian Timber Certification Scheme) or FSC (Forest Stewardship Council)-certified, or carry TLTV (SGS’s Timber Legality and Traceability), VLO (Verified Legal Origin) or OLB (Origine et Legalité du Bois) proof that they are legally sourced.

Environmental profile

In fact, the company has worked hard on its environmental profile and 2009 in particular saw many positive developments on that score.

For example, Lionex was one of the first Asian exporters to achieve PEFC certification and, in the same year, it launched its corporate social responsibility (CSR) policy, which includes plans to work towards a 100% sustainable timber trade by 2011.

Part of its CSR policy is to ensure that all its suppliers sign up to its “Accepted Timber Supply Program”.

This initiative was developed in order to create full transparency between Lionex and its supplying partners and, in the scheme, suppliers are measured against their commitment to achieve Lionex’s own values and environmental targets.

While the company stresses that the Accepted Timber Supply Program is no substitute for third-party certification and that its suppliers should make strenuous efforts to secure this, the Program is seen as a “tool for transparency” and covers issues such as sustainable sourcing – ensuring the origin of every log traded is known and sustainable – along with health and safety management and the human rights of both employees and indigenous peoples.

“Our goal is to have all our direct and indirect suppliers hooked up to the Accepted Timber Supply Program and complying with the minimum requirements of our CSR policy by the end of 2011,” said managing director Marco Poot.