Barama to increase local plywood production under $1B reinvestment plan

Barama Company Limited (BCL), a leader in the forestry and manufacturing sector, has announced the installation of a significant new phase of reinvestment which has seen a massive expansion of its plywood production facilities. This strategic move, part of the “Barama 3.0” transformation plan, reinforces the company’s 34-year commitment to Guyana’s industrial growth, value-added manufacturing, and sustainable community development.

Driven by a recent reinvestment exceeding GY$1 billion, Barama has successfully revitalised its factory operations at Land of Canaan, East Bank Demerara and the timber supply chain. This capital injection has funded the addition of critical machinery and the integration of advanced processing technologies.

The expansion triggers a 50-70% increase in production capacity depending on prevailing market conditions, ensuring that Barama remains the primary source for high-quality, tropical hardwood plywood.

The company has transitioned from a period of restructuring to full-scale recovery, significantly improving the conversion rate of logs to finished plywood by over 7%. By optimising its recovery processes, Barama is maximising the value of every cubic meter of timber harvested, aligning with Guyana’s Low Carbon Development Strategy (LCDS).

Central to Barama’s expansion is its “Local First” sourcing strategy. To meet the increased demand for raw materials, the company has deepened its engagement with rural and riverain communities. Barama sources approximately 95% of its manufacturing inputs indigenously. By partnering with small-scale loggers and community forestry associations in remote areas, the company has invested in vital capital equipment needed to support the rural economy.

This model provides rural producers with a consistent market for their logs, fostering long-term economic stability in regions that depend on the forestry sector. This expansion project will relate to a 50% increase in timber supply needs and an improvement in the timber specifications in favour of suppliers.

The expansion of the Plywood division has led to a significant surge in employment. Barama is not only growing its headcount from 200 employees to now having a capacity 415 employees but is fundamentally changing the demographic of the forestry workforce. In doing so, the company continues to foster a safe and healthy work environment along with above standard welfare practices, with the possibility of being the only unionised company in the forestry sector.

Breaking traditional forest industry norms, over 40% of Barama’s workforce is comprised of women. From the factory floor to specialised technical roles and management, the company is committed to gender parity and providing high-skill manufacturing opportunities for Guyanese women.

As a testament to its operational excellence, Barama recently received re-certification for four consecutive years of the GNBS “Made in Guyana” Standards Mark. This certification covers its diverse range of plywood, including regular, grooved, and water-resistant types, ensuring that local consumers and international export markets receive products that meet world-class benchmarks.

During the reinvestment phase, the company managed to introduce waterproof (WBP) plywood as a new product which meets the current construction demand for such plywood. Going forward, it will be introducing other plywood products to further enhance its product line.

To ensure the long-term viability of the local plywood industry and protect existing jobs, the company is seeking government’s collaboration to address current raw material shortages and an erosion of the market integrity as detailed in earlier correspondences. These proposed measures, including certain concessions on specialised manufacturing inputs, are intended to stabilise production levels and overcome immediate threats to the future of plywood manufacturing. Currently, the market situation has had the following impact over the last 8 months:

• Slow Down in Production Loss: 2,000 cubic metres valued at G$330million
• Manhours loss: 300 hours
• Manpower Loss due to slow down: 50 employees

Nevertheless, Barama Company Limited expressed sincere gratitude to the Government of Guyana for its continued commitment to enforce trade policies, which provides essential stability for the domestic manufacturing sector.

“We thank the Guyana Office for Investment for facilitating the Investment Agreement enabling our G$1 billion reinvestment, and the Guyana Forestry Commission for their steadfast policy enforcement and supplier networking. Most importantly, we acknowledge our valued suppliers, customers, and our dedicated, hardworking workforce. Together, these partnerships remain vital to the sustainability and growth of Guyana’s timber sector,” the company said.

Established in 1991, Barama Company Limited is the largest investor in Guyana’s forestry sector. The company specialises in the production of tropical hardwood plywood, consistently striving to provide value-added products that showcase the richness of Guyana’s natural resources.