#Japan #Nagoya #rental housing #sustainable forestry #domestic timber

Transitioning from Imported Timber Dependency

On May 22, 2026, an unveiling ceremony for the "Wood Utilization Promotion Agreement for Buildings" took place under the attendance of Yoshitaro Kosaka, Director-General of the Forestry Agency. This agreement, signed by the Ministry of Agriculture, Forestry and Fisheries, Tokken Corporation, Kyowa Wood Industry, and Dairy FPC, marks the first organized effort to promote the use of domestic timber in rental apartments and condominiums. Previously, the construction of wooden rental apartments heavily relied on imported materials. However, this collaborative initiative sets a target to utilize 30,000m³ of domestic timber over the next three years, contributing to forestry revitalization, local revitalization, and the realization of a decarbonized society.

Why Focus on Domestic Timber Now?

The recent "Wood Shock," characterized by skyrocketing lumber prices and supply shortages, has laid bare the risks of dependency on imported materials in the housing sector. The Two-by-Four construction method, primarily reliant on imported materials from North America, is especially vulnerable to fluctuations in global market prices, exchange rates, and international logistics. Such supply delays and price volatility have become serious issues, directly impacting construction costs and timelines, and revealing risks to stable housing supply.

Building a Domestic Supply Chain

In response to these challenges, Tokken Corporation has taken decisive steps towards establishing an independent domestic supply chain, aimed at utilizing domestic timber. Collaborating with Kyowa Wood Industry and Dairy FPC, the company has gradually set up a supply framework for domestic cedar Two-by-Four materials. They have built a solid foundation for stable supply while also accumulating significant quality credentials.

This agreement is more than just a shift in procurement; it aims to create a new supply model that continuously and systematically utilizes domestic timber in the wooden rental housing market, which had previously relied on foreign materials. Expanding the use of domestic timber also supports the cyclic utilization of forest resources, revitalizes the forestry sector, boosts local economies, and contributes to the realization of a decarbonized society.

The Challenges of Domestic Two-by-Four Wide Materials

Traditionally, wide materials like "2x8," "2x10," and "2x12" used in wooden rental apartments have sourced primarily from North America. The stable supply of domestic materials has faced three main challenges:

Challenge 1: Shortage of Large-Diameter Timber

The production of wide materials requires robust timber. However, many domestic forests planted under post-war afforestation policies were optimized for traditional wooden posts, making it challenging to secure large-diameter timber for wide materials.

Challenge 2: Drying Technology Difficulties

Domestic cedar has considerable variation in moisture content, making it challenging to uniformly dry wider materials without high skill, time, and cost. During the drying process, warping and twisting can also significantly reduce usable timber quantities.

Challenge 3: Domestic Equipment Shortage

Many domestic sawmills are optimized for traditional processing methods, with few equipped to mass-produce the machinery and drying equipment necessary for wide Two-by-Four materials.

To address these challenges, Kyowa Wood Industry and Dairy FPC have leveraged local characteristics and technical capabilities to build solutions, which we will explore in the next section.

Collaborative Domestic Timber Supply Models in Fukushima and Tokushima

The core of this agreement relies on collaboration with Kyowa Wood Industry in Fukushima and Dairy FPC in Tokushima. Both companies have established quality control systems as JAS-certified sawmills, possessing a supply capacity exceeding the approximately 40,000m³ of Two-by-Four materials that Tokken Corporation uses each year. They have a solid supply base in place to meet the 30,000m³ target set by this agreement.

Quality and Proven Performance of Domestic Timber

In response to the timber shortages caused by the Wood Shock, Tokken Corporation has intensified the use of domestic cedar Two-by-Four materials supplied by both companies. The domestic materials have not only been rated highly for their quality but have also led to sustained adoption due to accumulated successful construction experiences.

A 15-Year Journey with Tokushima

Dairy FPC has worked closely with the Tokushima Forestry Promotion Department for about 15 years, conducting studies and trials on the effective utilization of the increasing large-diameter timber in the region. With its early replanting cycles, Tokushima's forests grow rapidly, and the potential uses for large-diameter timber have garnered attention early on.

In addressing multiple criteria, including long log collection, sawmill line preparation, and drying technology, collaboration among the Tokushima government, forestry stakeholders, and sawmill businesses has culminated in the establishment of a mass production system for five-meter wide materials. This rare supply model in Japan is expected to ripple through the entire industry as a new business framework for utilizing large-diameter timber.

Establishing a New Standard through Domestic Timber Utilization

This initiative is not just about adopting domestic timber; it is about constructing a domestic supply chain that connects raw material procurement, processing, and construction. Under this agreement, Tokken Corporation is pioneering the shift away from imported timber, establishing a new standard for domestic timber utilization that promotes forestry revitalization, local growth, and a decarbonized society.

30,000m³ Target: Equivalent to a New Town Scale

The agreement sets a goal of utilizing 30,000m³ of domestic timber over three years. This figure represents the initial target, equivalent to about 667 large trailers loaded with approximately 45m³ each, or enough wood to construct around 1,200 Two-by-Four homes of 40 tsubo, or build 80 25-meter swimming pools commonly found in schools. The height of a stack made with this amount of wood would reach approximately 30,000 meters, which is about eight times the height of Mt. Fuji.

This is a large-scale initiative in the domain of domestic timber utilization in wooden rental apartments and is expected to have broad positive effects throughout the entire domestic lumber supply chain, including forestry, milling, and logistics. Tokken Corporation aims not only to achieve this goal but to further foster ongoing demand for domestic timber within the wooden rental housing market, establishing itself as a leading company in this transformative effort.

Economic, Forestry, and Decarbonization Impact

Through enhancing the use of domestic timber, this agreement contributes to solutions for social issues, including sustainable forest resource circulation, revitalization of the forestry sector, and the realization of a decarbonized society.

The utilization of domestic timber supports healthy forest cycles through harvesting and usage. As wood has the capacity to sequester carbon, larger use of timber in construction materials contributes to decarbonization efforts. Transitioning from imported to domestic materials not only mitigates environmental impacts from transportation but also facilitates the sustainable procurement of building materials using domestic resources.

Revitalizing Local Sawing and Forestry

In this initiative, collaborations with local sawmill operators, such as Kyowa Wood Industry in Fukushima and Dairy FPC in Tokushima, focus on expanding the use of previously underutilized large-diameter timber resources. As demand for domestic cedar wide materials increases, investments in sawing equipment, drying facility developments, and technical innovations will be prompted, leading to a boost in the domestic timber industry. This initiative, which utilizes local forest resources effectively, fosters sustainable regional economies and creates or preserves local employment.

Unveiling Ceremony Details

On May 22, 2026, the unveiling ceremony for the "Building Wood Utilization Promotion Agreement" was held at the Ministry of Agriculture, Forestry, and Fisheries. Key representatives, including Yoshitaro Kosaka, attended the event to reaffirm their commitment to expanding domestic timber use. The ceremony featured greetings from company representatives and discussions on the importance of increasing domestic timber usage in rental housing construction and building a local timber supply chain.

Ceremony Summary

Date: May 22, 2026
Venue: Ministry of Agriculture, Forestry, and Fisheries
Attendees: Yoshitaro Kosaka, Tokken Corporation's Supply Chain Manager, Yuji Takagishi; Kyowa Wood Industry's Representative Director, Hiroki Sagawa; and Dairy FPC’s Representative Director, Takahiko Kohama.

Ceremony Agenda

• - Introduction of Agreement Content
• - Greetings from the Ministry of Agriculture, Forestry, and Fisheries
• - Remarks from Each Company
• - Commemorative Photos

Future Outlook

Tokken Corporation views this agreement signing as a starting point to further promote the use of domestic timber. The current target of 30,000m³ over three years serves as the first phase, and after achieving it, the aim is to expand utilization further. Concurrently, the need for domestic cedar's wide materials, like "2x8," "2x10," and "2x12," which have limited supply cases domestically, will also be supported through demand creation, ensuring a stable supply structure.

Additionally, through strengthening the domestic supply chain that connects forestry, milling, logistics, and construction while deepening collaboration with local forest resources and sawmill operators, Tokken Corporation is committed to building a sustainable wood utilization model. This initiative sets the stage for establishing domestic timber utilization as a new standard in the wooden rental housing market and leading industry-wide transformation.