Sumitomo to lift New Zealand wood supply
JAPANESE FORESTRY COMPANY, Sumitomo Corp, is looking to increase its New Zealand lumber capacity 60% by 2020 to meet growing demand in China and other parts of Asia.
The company’s Summit Forests New Zealand subsidiary owns around 29,000 hectares of plantation forests and is planning to invest $64.1 million to expand its holdings to 36,000 hectares.
Summit has already signed a deal to acquire some 4,000 forested hectares in the North Island and aims to add more.
About 80% of Summit’s lumber and timber is split between New Zealand, Australia and Japan sales, while just 20% goes to China.
Following a decision by China to significantly reduce harvesting in its own forests, Sumitomo believes there is an opportunity to sell more wood in the coming years.