Updated by "Forest Circular Economy" Editorial Board on July 23, 2025, 4:19 PM JST
Editorial Board, Forest Circular Economy
Forestcircularity-editor
We aim to realize "Vision 2050: Japan Shines, Forest Circular Economy" promoted by the Platinum Forest Industry Initiative. We will disseminate ideas and initiatives to promote biomass chemistry, realize woody and lumbery communities, and encourage innovation in the forestry industry in order to fully utilize forest resources to decarbonize the economy, strengthen economic security, and create local communities.
Cypress Sunadaya, a group company of Obayashi Corporation, and Chubu Electric Power Company announced on July 22 a plan to build one of the largest sawmills in Japan in Kushiro, Hokkaido, with the aim of starting commercial production in April 2028. The two companies established Kushiro Wood Products as a joint venture in November 2024, and this announcement details their business plan.
The new plant will manufacture lamina for laminated wood and dimension lumber (2x4 lumber) as its main products, and will produce paper chips and sawdust as by-products. The main raw materials for logs are Abies sachalinensis from Hokkaido, etc. Large sawmilling machines made in Europe will be introduced to enable high-quality, high-volume production. In its third year of operation, the company expects to consume approximately 360,000 cubic meters of logs per year, and plans to establish a stable supply system that can compete with imported timber in terms of quality, price, and supply volume.
In the Japanese residential wood structural materials market, foreign timber has become the mainstream due to its stable price and quality, and the abundant forest resources in Japan are not being fully utilized. This project aims to promote the use of domestic timber and encourage housing manufacturers to expand their use of domestic timber.
Kushiro is located close to the artificial coniferous forests of Abies sachalinensis and Japanese larch in the eastern part of Hokkaido, and can expect stable procurement of logs. In addition, the availability of a large industrial site with infrastructure where a paper mill once operated and Kushiro City's efforts to attract wood processing and biomass-related industries are likely to make Kushiro more attractive as a production base.
In order to promote the spread of wooden and wood construction, Obayashi Corporation is committed to building a recycling-oriented business model that optimizes the entire supply chain, from design to construction and material supply, and this lumber business is positioned as part of this effort. In addition, Chubu Electric Power Company has also set forth its participation in the forestry business in its management vision, aiming to secure CO2 sinks and contribute to the local economy. The two companies intend to contribute to the strengthening of the competitiveness of domestic timber and the sustainable development of the forestry industry through this initiative that takes advantage of Hokkaido's forest resources.
