Focus Lumber (KLSE:FLBHD) has delayed plans to start operations for harvesting activities and nursery works, under the industrial tree planting agreement with Rakyat Berjaya, to the first quarter of 2027, according to a Monday filing to the Malaysian stock exchange.
The company had previously expected the harvesting and nursery works to begin in the third quarter of 2026. The decision was made after considering the prevailing operating and market conditions, including the increase in diesel prices and operating costs.
However, nursery works have begun and are currently in preparation for the planting activities under the project.
Under the deal, signed in 2023, the hardwood veneer and plywood manufacturer will plant, rehabilitate, and harvest forests in about 5,000 hectares of forest reserve at the Sungai Pinangah Forest Reserve in Sabah, Malaysia.