Charcoal fro industrial use can be produced in a kiln fabricated from a standard 200-lit drum. The invention involved modification of the drum by introducing air inlet and chimney at the top of the drum. Two 8cm diameter holes fro air inlet and chmney about 30cm from the base is made means of welding. This method has been proven and successfully produced charcoal from carbonisation of coconut shells. This method is enviromentally friendly, productive and economical for charcoal production in Malaysia.