Evergreen has on the 20th Dec 2006 completed the acquisition & takeover the assets of Takeuchi MDF Sdn Bhd, a wholly owned subsidiary company of Merbok Hilir Berhad. This takeover allows Evergreen to broaden its product range and further expand its business into the production of "extra thin" MDF ( 2.2 – 4mm) using material of acasia & mixed tropical wood which is more moisture resistant, better strength & is ideal as substitute for plywood. The plant is also able to produce a low formaldehyde emission MDF product which is ideal for customers that produce furniture for Japan market.
The plant has a designed capacity of over 100,000 m3 of MDF & will increase the capacity of Evergreen Group by approximately 17% to 700,000 m3 commencing in the year of 2007. This plant has also a supply source contract of logs & wood chips for 5 years until 2011.
This Acquisition is expected to contribute positively to the earnings & growth of the Evergreen Group.