Conwood

Wood Replacement for a Better Environment

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Authors

Pasha Rionovan

Pasha Rionovan

Amelia Naim Indrajaya

Amelia Naim Indrajaya

School

IPMI International Business School

IPMI International Business School

Professor

Amelia Naim Indrajaya

Amelia Naim Indrajaya

Global Goals

9. Industry, Innovation and Infrastructure 11. Sustainable Cities and Communities 12. Responsible Consumption and Production 13. Climate Action 15. Life on Land

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Summary

Conwood is the first company in Indonesia to produce a wood replacement.

Innovation

Conwood produces a material that can substitute for wood. Even though it is a wood replacement, it has more and better benefits than wood itself.

  • Looks like wood and is beautiful.
  • Can be sawed, nailed, and carved.
  • Can be laser printed.
  • Termite proof.
  • Fireproof/fire resistant.
  • Recycleable. Used material and waste from the material can be converted 100% to a new usable Conwood product. This is a "zero emission" process using the most advanced technology.
  • Cheaper and more reasonable price compared to wood.

Wood Replacement for a Better Environment

Inspiration

Lots of destruction of the environment and forest, Illegal logging, and irresponsible logging need to be stopped. Therefore Conwood aims to increase its production and decrease the use of wood. The exploitation of wood has destroyed the forest as the home of animals that need to be protected, as many species are beginning to go extinct.

Overall impact

Because of this breakthrough, people can have a wood-like material that is more affordable and doesn't require destroying the forest to get the quantities needed. For example, around three trees are used in the construction of one house. We can imagine how many trees will be saved if 1,000 homes are built.

Business benefit

With the appreciation and support from people and government, in just 2 years Conwood's investment of as much as US $170 million has attained break-even position. Right now, Conwood keeps growing steadily with around 3% of growth each year.

Social and environmental benefit

This innovation has several benefits:

  • Decreases the use of wood, which decreases the amount of trees chopped down, especially in Indonesia.
  • Zero emissions: All materials used in the production process, for example water, can be reused with only 1% waste. All used production and waste from product leftovers can be put inside the production machine and converted into 100% quality usable product.
  • Preserve the environment, especially forest and animal species.
  • Cheaper construction cost for the wood substitute, which means that either developers gain better revenues or consumers have cheaper houses.

Interview

Sandy Harsanto, Infrastructure and Innovation Manager in PT Conwood

Photo of interviewee

Business information

Conwood

Conwood

ID
Business Website: http://conwood.co.id/
Year Founded: 2003
Number of Employees: 51 to 200

Conwood was founded by SCCC in 2003, with one production line of 45,000 tons/year. This was followed in 2005 by an investment in a second production line, bringing the total capacity to 90,000 tons/year. The third investment in a third production line brought total capacity to 135,000 tons/year in 2011. In 2015, the number of Conwood's total employees reached 170.