JEC COMPOSITES MAGAZINE - Issue #55 - February/March 2010 - 25

Outlook reduction of import duties among ASEAN member countries will have severe economic repercussions on the livelihood of local tobacco farmers since local crop prices will not be able to compete with other member countries. The East Corridor Economic Region (ECER) established by the government and supported by PETRONAS, the national petroleum company, has been allocated 10,000 hectares along the east coast of Malaysia for planting kenaf. This initiative should help raise international awareness of the multiple bene¬fits that are intrinsically linked to the use of fibres such as kenaf, jute, ramie, flax, hemp and oil palm. Special attention will be given to technological developments, socio-economical growth opportunities and practices for the evaluation of environmental benefits linked to the use of natural fibres. The recent decision of the United Nations Industrial Development Organization (UNIDO) to implement a project for the development of kenaf in Malaysia lends further credibility to the Company's drive to enter the kenaf industry. Through funding by the Netherlands-based Common Funds for Commodities (CFC), of which Malaysia is a member country, the project examines the potential growth of the industrial and commercial use of kenaf in selected industrial applications. The project’s aim is to increase the production efficiency of small kenaf production systems for specific industrial applications. The UNIDO plans to implement this project with the joint assistance of UPM and seven participant industries. The International Jute Study Group and IBFC (China) will supervise the work. In conjunction with the International Year of Natural Fibre 2009, Malaysia hosted the International Conference on Kenaf and Allied Fibres (ICKAF) as a platform for discussions on the potential uses of kenaf and allied fibres in high-end industrial applications. The event was organized by leading research and government bodies such as the Institute of Tropical Forestry and Forest Products (INTROP), the University Putra Malaysia, the Malaysian Timber Industry Board (MTIB), the National Kenaf and Tobacco Board (NKTB) and the International Jute Study Group (IJSGBangladesh). Fig. 2: Oil and gas reserves will soon be depleted The increasing price of crude oil (Fig. 2) also contributed to the hike in polypropylene prices. This will give rise to a growing demand for more economical and competitive alternative materials such as kenaf as a substitute for synthetic materials. This will also directly contribute to increasing the importance, development and use of composite materials. The Company, which relies extensively on synthetic fibres in its product line, has responded positively to this drive. It should bring greater opportunities to expand its product line. Fig. 4: Natural fibre-reinforced materials in a 21st century building structure Fig. 3: Natural fibre applications in automotive interiors ICKAF was also an opportunity for potential users from various industrial sectors to help the Malaysian government promote kenaf and other allied fibres so as to make them the third commodity plant after rubber and palm oil. So far, four companies have started manufacturing 100% kenaf-based products: 1) KEFI Malaysia which produces fibres and insulators (Fig. 3), 2) Symphony Advance which specializes in powdered kenaf for bio-composites, 3) fibre producer Kenaf Natural Fibre (KFI), and 4) Integral Wood Sdn Bhd No55 February - March 2010 / jec composites magazine

JEC COMPOSITES MAGAZINE - Issue #55 - February/March 2010

Table of Contents for the Digital Edition of JEC COMPOSITES MAGAZINE - Issue #55 - February/March 2010