Village surrounding Kilombero Valley Teak Company (KVTC) has been assisted to develop 64 hectares of teak trees in a sustainable program for different villages in Ulanga and Kilombero. Talking to different project stakeholders KVTC Social Manager Kennedy Haule said this project is an asset for participating villages.

Also this seminar was attended with Ward Councilors, Village Executive Officers, Divisional officers and Forest Officers from area surrounding teak plantation. Haule said these farms will be source of income and contribute towards community development projects. Mentioned participating villages includes; Igumbiro, Idete, Nakafulu, Kidugalo, Iragua and Itete Minazini and that between 2007 to 2010 KVTC has spent 36 million as direct cost of establishment for village teak plot. Said that all income from the teak plot will help the village while KVTC supports all operations of managing of this farm.

That manager said besides of this village teak trees growing, KVTC has financially empowered local community to develop different community projects which aim to improve education, health and environment.

Also said KVTC is conducting annual village seminar to increase public awareness in developing teak project in Kilombero river Valley which involves different leaders from Ulanga and Kilombero districts.

Haule said despite of community engagements, the company has started processing small diameter logs into valuable products for markets.

KVTC is raising seedlings and local communities are allowed to buy seedlings/stumps and processed timber for furniture.

Earlier when opening the seminar Kilombero District Council Chairman Pius Affa explained there is a need to have good relation between local people, leaders and investors in order to bring community development.

Affa said without co operation they will be no success, and encourage the investors to increase the effort to invest in short term project in order the community to get earlier benefit and not to wait this crop which take 18 to 25 years to get the benefits.

TC Wooden Floors were shown at the recent Decorex Trade Show in Johannesburg in cooperation with Rhoms Timber World from South Africa.

The trade show was a great success and KVTC believes that this is the first step towards the launch of KVTC’s product range in South Africa

By BW Reporter, featured in East African Business Week:

Opportunities to Watch

Tanzania. DAR. Kilombero Valley Teak Company Ltd (KVTC) has established a modern sawmill and wood processing facility worth US $8.8 million to generate export revenue.

KVTC said that the processing plants were commissioned in August this year and will generate substantial and sustainable export revenue in excess of US $10 million per annum.

Speaking to East African Business Week in Dar es Salaam last week, the Forest Products Manager of KVTC, Mr Hans Lemm, said out of generating export revenue, the progress will also work to boost production capacity of woods in the country.

KVTC has managed to plant approximately 7,800 hectares of teak trees since 1993 and manages approximately 20,000 hectares of indigenous forestry land in the country. According to KVTC, as part of the normal management regime of the plantations at TVTC thinning is now being harvested fro more mature compartments.

“In order to process this teak, KVTC has decided to construct a modern sawmill and wood processing facility worth US $8.8 million from which teak flooring and other products will be exported from Tanzania,” said Mr Lemm.

Mr Lemm added that markets for KVTC’s products are mostly in the far east, Europe and Northern America. KVTC says, the investment is one of the most significant in the East African forestry sector.

The addition of the processing plants in 2009 is fulfilling its commitment at inception of processing the trees where they are grown, so that the local people may benefit from the entire process of KVTC activity,” explained Mr Lemm.

KVTC Community Development manager, Mr Kennedy Haule said that his firm has so far provided employment opportunities to around 700 people on its plantations.

“There is a direct employment of approximately 120 people who work and manage its plantations and 110 people that are employment at the wood processing facilities,” said Mr Haule.

According to the firm’s general manager, the processing complex in arguably the most modern factory of its kind in Africa and north of South Africa.

By Orton Kiishweko, featured in Daily News 6th October 2009

The Government’s efforts to effect a value added goods market received a boost yesterday when a forestry company announced its foray into wood supply chain with expected annual export revenue of 130bn/-.

The company’s entry into the processing industry incidentally comes following recent UN data, showing that demand for paper products in Europe is expected to increase by 80 per cent by 2030.

Europe is one of the projected high end major markets for Kilombero Valley Teak Company (KVTC) products expected to start leaving the Dar es Salaam port in two months time, according toe the Forest Products Manager, Mr Hans Lemm.

Mr Lemm said the East African high end markets would eat up 10 per cent of the company’s products in the projected market size in the next six months after processing started in September this year.

On certainty of the products’ reception onto the European markets, the General Manager, Mr Riaan Van, noted during the announcement yesterday that KVTC had already been certified under the TLTV scheme which guarantees buyers that the products were legally sourced and are sourced from well-managed forests. This is a step taken by large scale wood producers all over the world in line with the European law passed earlier this year, calling for all wood companies to start providing information about the source of the products they trade in the EU.

The EU is one of the main projected markets for Tanzanian companies’ products.

The move by European markets was to ostensibly protect the forests but also clean the trade as Governments streamlined the commercialisation of forest produce.

Such large scale companies have been in the spotlight in their quest to get land for their activities, but KVTC cleared the air when they noted that all their procedures had been audited by both national and international bodies.

Their venture into processing has seen the company construct a modern sawmill and wood processing facility from which teak flooring and other products will be exported from the country.

The processing plan, which is the largest sawmill in Africa outside South Africa, was commissioned in August, this year and is expected to generate export revenue in excess of $10 (130bn/) each year.

It is a result f the company’s transformation programme from plantation development into commercial forestry and wood processing operation.

Mr Van said other important markets were the United States, Southeast Asia and the Indian domestic market, explaining that: “We expect significant sales due to the fact that we add value to our products.”

By 2015, the company will be buying products from small-scale producers, some of whom are neighbours in Kilombero, being supported with technical knowledge and teak tree seeds for their schemes.

By Sayuni Kimaro, featured in This day, Tuesday 6th October 2009

Planting of teak trees will not force people to abandon their agricultural activities as most of the crops are harvested annually while teak trees have a long lifespan leading to their harvesting.

Kilombero Valley Teak Company General Manager, Riaan Van Wyk, stated this yesterday during a seminar to introduce teak trees, which mainly produce wood as well as poles whose farming is done in Ulanga and Kilombero districts.

In his presentation, Wyk said the company’s mandate is to develop an economically viable and sustainable forestry business with high standards of environmental and social standards. Currently 30 per cent of the total land is planted with teak while the balance of land is managed under different regimes.

He said planting teak trees would have no deforestation impact as comprehensive assessment was done before establishing the plantation. According to him, establishment of plantations in evergreen forests or riparian zones should ensure the buffer zones to water ways are maintained.

Concerning the teak out-grower programme, Wyk mentioned that all areas planted with the trees are continuously inspected and the same standards are applied to KVTC’s own planted areas.

He said the aim is to reach the first harvest after 15 years and generate revenue for small scale teak growers.

“Of the unplanted areas, 50% will be utilised for sustainable harvesting of indigenous species and balance more sensitive areas not utilized for timber. The programme is designed in such a way that if a person cuts a tree, he/she must replace it by planting of to ensure that there are no deforestation worries at all,” he noted.

KVTC Forest Product Manager, Hans Lemm, noted that with regard to climatic changes tat are being witnessed currently they’re well prepared and ready to capitalise on heavy rains.

KVTC’s shareholders include the Commonwealth Development Corporation (CDC) and Finnfund which are members of the EDFI (the association of European Development Finance Institutions), a group of 17 bilateral institutions which provide long term private sector finance for developing economies.

svit-matrasiv.com.uaeuroposud.ua

By Patrick Kisembo, October 6th 2009

Residents of Kilombero and Ulanga districts in Morogoro have established a sustainable and complementary teak out-grower industry, providing room for a continuous income generation.

This was said on Monday in Dar es Salaam by the Kilombero Valley Teak Company Limited General Manager, Riaan Van Wyk, at a familiarization workshop with editors and senior reporters from various media houses.

He said the company developed a forestry expertise which is made available to the local communities along with seedlings making teak familiar to hundreds of small-scale cultivators.

“We have been distributing seedlings to local communities who in turn now, have started selling plans to us,” said Riaan Van Wyk.

Wyk said the community would soon benefit after the company’s newly established processing plants which started operating in September this year.

“We are so much involved in several social activities including teak out growers and beekeeping programmes to empower the communities surrounding us with economic base for their lives,” he said.

Earlier on, the company’s Corporate Social Manager, Kennedy Haule said previously the company got problems in convincing the local community that they would benefit from the teak project.

“Many of them did not buy the idea, but as days passed, some started adopting and later found themselves better off than others,” said Haule.

He said the company had given out 14,000 teak seedlings to the village communities and individuals for cultivation.

He said the majority of them plant teak on farm boundaries as borders and some few apply mixed farming for the first two to three years of teak growth.

Haule said the company has established strict rules to ensure it works collaboratively with the local community in preservation of the environment.

“We have created social fund with a joint account with nine villages where we work together in establishing schools, dispensaries, classes and infrastructure. We involve the village communities in maintaining and managing these projects,” he said.

Haule said further that villagers in the nine villages are able to control fire outbreak, illegal hunting and invasion of the area by people.

svit-matrasiv.com.uaeuroposud.ua

By Leonard Magomba, featured in The East African, October 19th 2009

Kilombero Valley Teak Company Ltd has invested $8.8 million into a modern sawmill and wood processing factory to process wood and timber products locally.

The factory, commissioned in August this year, is expected to generate export revenue in excess of $10 million per annum.

Hans Lemm, the forest product manager said the company decided to invest in the plant to add value to local harvested teak and boost production capacity of wood by-products in the country.

“The final products have so far secured markets in the Far East, Europe, East Africa and north America and this investment has distinguished the company to be one of the most significant investments in the East African forestry sector,” he said.

The company has so far planted approximately 7,800 hectares of teak trees since 1993 and manages approximately 20,000 hectares of indigenous forest land.

Community Development manager Kennedy Haule said that the company currently employs about 700 people directly and indirectly on its plantations.

“There is direct employment of approximately 120 people who work and manage the plantations and 110 people are employed at the wood processing facilities,” said Mr. Haule.

Over the past five years Kilombero has contributed approximately $150,000 to a number of local projects among them schools, dispensaries, housing for teachers and village halls.

In 2004, Kilombero was awarded ISO 14001 certification in conformation that the company’s environmental management standards meet international criteria.

General manager Riaan Van Wyk said the company has maintained its ISO 14001 certification since then, with annual audits being successfully done.

Mr Van Wyk sad that this year, SGS certified the company under the Timber Legality and Traceability Verification scheme which guarantees buyers of its products that they were legally sourced and are from well-managed forests.

With major shareholders including UK and Finnish development funds, Kilombero is dedicated to delivering high value teak wood and by-products, sustainably and ethically sourced.

svit-matrasiv.com.uaeuroposud.ua

By Timothy Kitundy, featured in The Business Express

Dar es Salaam, October 8th 2009

The Kilombero Valley Teak Company (KVTC), which invested over US$ 48 million in the miombo woodlands of Kilombero, now boasts the provision of employment to around 700 people on its plantations and has greatly improved the environment of the area that they operate.

Speaking in Dar es Salaam recently Hans Lemm, KVTC Forest Product Manager said that apart from the said achievements, the firm has also been awarded international standards certification of which the company’s environmental management met the international criteria.

“KVTC provides employment opportunities to around 700 people on its plantations, there is a direct employment of approximately 120 people who work and manage the plantations and 110 people that are employed at the wood processing facilities,” he said.
According to Lemm, KVTC, which is now the largest employer in its immediate region generates the bulk of the employment through opportunities through a programme to encourage and empower contractors and teams of people from neighbouring communities to do all agricultural work in plantations.

He said in 2004, KVTC was awarded ISO14001 certification in confirmation that the company’s environment management standards meet international criteria, and has maintained its ISO14001 certification since then, with annual audits successfully passed.
“Also in 2009 SGS certified the firm under the TLTV scheme which guarantees buyers of its products to that these products were legally sourced and are derived from well-managed forests,” he added.

In terms of Corporate Social Responsibility, Kennedy Haule, an official from KVTC said that over the years the company has contributed to its local communities through provision of funds to the Social Fund jointly managed by communities and the company.

According to Haule, over the past five years, KVTC has contributed approximately US$ 150,000 to a variety of projects, which have been backed by the Social Fund scheme include schools, dispensaries, teacher accommodation and village halls.

“Incentives to prevent wildfires and poaching are also part of this formally structured village contract. Annually this generates about US$ 25,000 income to KVTC neighbouring villages,” Haules said.

Haule further revealed that the company has fully been involved in and actively participates in HIV / AIDS awareness programmes and has additionally dispensed forestry expertise development by the firm to the local communities and the distribution of seedlings.

svit-matrasiv.com.uaeuroposud.ua

The Kilombero Valley Teak Company Ltd. (KVTC) has donated a total of 40m/- to Kilombero and Ulanga districts for development.

KVTC Community Development Manager, Kennedy Haule said the money is part of the funds given to villages in the districts every year for community development projects.

He said the company has been releasing the funds for health, education and infrastructure sectors, since its inception in 1995.

The ten villages, benefiting from the funds include Milola, Igumbiro, Lupiro, Nakafuru, Kidugalo, Iragua, Itete Mianzini and Mavimba in Ulanga district. Others are Namawala and Idete in Kilombero district.

Speaking at the handover ceremony the Kilombero District Council Chairman Hassan Goagoa commended the company for its contribution to the development of the two districts, calling on it to continue working with the two councils to speed up development activities.

Featured in the Guardian Tanzania 20th August 2009.

SGS has recently issued the TLTV statement to the Kilombero Valley Teak Company Ltd. (KVTC) The award represents the first Timber Legality & Traceability Verification (TLTV) statement to be issued in an English-speaking African country.

Rewarded for Legality of Production (LP), KVTC was evaluated against agreed standards under the SGS TLTV Program, for the production of teak round logs, sawn timber and other timber products at Ichima (2,636 ha), Narubungu (2,112 ha), Nakafulu (15,171 ha) and Mafinji (8,212 ha) forest management units, as well as Mavimba sawmill, drying facility and value-adding plant. The TLTV Statement no. SGS-TLTV/LP-0011 confirms the company’s compliance with the program’s standards.

KVTC’s current shareholders are the CDC of the United Kingdom and Finnfund of Finland. The mandate of the company is to use the development of plantation forestry as a means to advance sustainable economic, social and environmental development in the Kilombero Valley in Southern Tanzania. The forest consists of 4 separate forest units in the Ulanga and Kilombero districts, with 11 villages bordering these areas. In addition to forestry operations, the company has commissioned a processing plant to transform logs into a combination of sawn timber and value-added products.

KVTC believes that recognition under the SGS TLTV Program is a confirmation of the high standards they employ throughout their operations. Furthermore, the TLTV statement will help the company in promoting and marketing its products in Europe and the U.S., and will boost customers’ confidence in the validity of the source of KVTC’s products.

Aside from the TLTV verification, KVTC has been ISO 14001-certified since 2004. Being the largest employer in one of the most destitute regions of Tanzania, the company is constantly trying to find ways to improve its environmental, social and economic impact for the benefit of the company as well as for the locality where KVTC operates.

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