KUALA LUMPUR (Jan 16): Besut Tsuda Wood Products Sdn Bhd (BTWP), a wholly-owned subsidiary of BTM Resources Bhd, has entered into a RM6.8 million log supply agreement with Gimzan Plywood Sdn Bhd (GPSB).
In a filing with Bursa Malaysia on Wednesday, BTWP said the agreement, effective Jan 1, will be for a period of two years and provide the BTM group of companies with a steady supply of logs as raw material for its sawmill operations, in line with its timber business.
The price for the logs supplied by GPSB to BTWP will be at a discount of 10% to the prevailing market price, applicable for species and size of the respective logs. BTWP will finance the purchase of logs via internally generated funds.
The agreement is expected to contribute positively to the its earnings for FY2013 and FY2014.