Press Release
July 22, 2025.
Obayashi Corporation
Cypress Sunadaya Corporation
Chubu Electric Power Co., Ltd.
Okinawa-based Obayashi Corporation (Headquarters: Minato-ku, Tokyo, President and CEO: Toshimi Sato) and its group company, Cypress Sunadaya Co., Ltd. (Headquarters: Saijo City, Ehime Prefecture, President: Yutaro Sunada), along with Chubu Electric Power Co., Inc. (Headquarters: Higashi-ku, Nagoya City, President: Kinsuke Hayashi), announced in a press release dated July 1, 2024, that they are preparing to begin production and sales of wooden structural materials for residential use in Kushiro City, Hokkaido, by April 2027.
On November 26, 2024, a new company named Kushiro Wood Products Co., Ltd. will be established. After verifying the business scheme and revising some of the plans, the aim is to start commercial production in April 2028.
Image of the log storage area (photo of the Cypress Sunadaya Toyo Industrial Park factory).1. Current state of the domestic sawn timber market.
The domestic market for wooden construction materials for residences is largely occupied by imported products due to factors such as price and strength. As a result, even though the rich forest resources in the country have reached their logging period, many are not being effectively utilized, and contributions to the recycling of forest resources and the realization of a decarbonized society are limited.
Many domestic laminated timber manufacturers rely on imports of laminas (planed boards) from EMEA, making it difficult to ensure stable procurement due to fluctuations in foreign exchange rates and the current uncertain global economic situation.
2 Overview of the Business Scheme
A new large-scale sawmill equipped with European-made sawing machinery and wood artificial drying equipment will be established in Hokkaido, producing laminas from Hokkaido-grown logs, such as Todomatsu, which have quality equivalent to imported wood, to be sold to domestic laminated timber manufacturers. Additionally, it is planned to sell products such as dimension lumber (2×4 lumber) produced at the factory to housing manufacturers.
In the initial plan announced in July 2024, in addition to the above-mentioned sawmill, there was a plan to establish a laminated timber factory equipped with a laminated material manufacturing line, mainly to produce and sell structural laminated timber for residences. However, after examining the project’s profitability, it was decided not to establish the laminated timber factory and to focus on the production and sale of laminas and dimension lumber.
Left: Main product, “Laminas made from Todomatsu for laminated timber” Right: Sawmill line, image perspective.
In the factory, in order to secure distribution volume and reduce costs, large machinery made in EMEA will be introduced to achieve mass production and enable stable supply. This will enhance competitive advantages in quality, price, and distribution volume against imported materials, contributing to the promotion of the use of domestic woods by housing manufacturers.
By expanding the domestic timber Market Overview, we aim to contribute to the realization of a carbon-free society, the preservation of forest circulation, and the revitalization of the regional economy, and will work on the lumber business in Kushiro, Hokkaido.
Overview of the lumber mill
This business plan
(Reference) The plan at the time of the previous announcement
Proposed location
Kushiro City, Hokkaido, approximately 6.7 hectares
(Note) A different location is being considered as a candidate site since the previous announcement.
Approximately 19 hectares in Kushiro City, Hokkaido
Factory facilities
Log yard, sawmill
Log yard, sawmill, laminated timber factory
Production equipment
Log debarker, log diameter grading machine,
Chipper canter sawmill machinery,
Wood artificial dryer
Log debarker, log diameter grading machine,
Chipper canter timber machinery,
Wood artificial dryer, laminated timber production line,
Pellet production machinery, etc.
Raw materials
Hokkaido-produced Abies sachalinensis (mainly)
Other Hokkaido-produced coniferous trees in general
The same as above.
Lumber consumption
In the first year of operation, approximately 0.1 million m3, in the second year approximately 0.2 million m3, and in the third year approximately 0.36 million m3 are planned.
The same as above.
Products
(Main products) Laminated wood for engineered wood, dimension lumber (2×4 material).
(By-products) Wood chips for Papermaking, sawdust.
(Main products) Structural laminated wood, dimension lumber (2×4 material).
(By-products) Wood chips for Papermaking, white pellets, sawdust.
Production start date.
April 2028 (scheduled)
April 2027 (scheduled)
(Reference) New company “Kushiro Wood Products”
Company name
Kushiro Wood Products Co., Ltd.
Date of establishment
November 26, 2024
Headquarters Location
Kushiro City, Hokkaido
Representative
Kazuyuki Sunada (currently the Chairman of Cypress Sunadaya)
Capital
100 million yen
Equity ratio
Cypress Sunadaya 80%, Chubu Electric Power 20%
Number of Employees
40 to 50 people (projected number during the first shift operation in the third year after starting production).
(Note) During the last release, 80 to 90 people.
Revenue
Approximately 8 billion yen (projected number during the first shift operation in the third year after starting production).
Business description
Production and sales of domestic timber products.
Above.
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