Fea­si­bil­ity study for new Green Tri­an­gle par­ti­cle board mill

Australasian Timber - - NEWS -

CON­STRUC­TION AND op­er­a­tion of a new par­ti­cle board mill for the Green Tri­an­gle re­gion of south east South Aus­tralia could be a step closer now that a study into the pro­posal has been launched.

The OneFortyOne Plan­ta­tions (OFO) de­ci­sion fol­lows a rig­or­ous in­de­pen­dent as­sess­ment com­mis­sioned by the com­pany, and builds on a pre­vi­ous study un­der­taken by the As­so­ci­a­tion of Green Tri­an­gle Grow­ers (AGTG) in 2014.

The fea­si­bil­ity study will in­ves­ti­gate the busi­ness and in­vest­ment case for the green­field project on land leased by OFO at Tarpeena. It is ex­pected the study will be com­pleted by mid- 2017.

If a de­ci­sion is made to pro­ceed with the project, it could lead to a sig­nif­i­cant cap­i­tal in­vest­ment of around $150 mil­lion to build the new par­ti­cle board mill to sup­ply do­mes­tic and ex­port mar­kets. The new mill could be op­er­a­tional around 2019.

Chief Ex­ec­u­tive Of­fi­cer Linda Sewell said the fea­si­bil­ity study re­flected the com­pany’s pos­i­tive view about the long term fu­ture for the forestry and wood prod­ucts in­dus­try in the Green Tri­an­gle.

Since the clo­sure of a re­gional pulp mill in 2011 there has been in­ter­est from the in­dus­try in ef­fec­tive ways to utilise low end fi­bre and for­est residues al­ready avail­able in the re­gion.

The an­nounce­ment of the fea­si­bil­ity study will en­able OFO to dis­cuss the pro­posal in more de­tail with gov­ern­ment and in­dus­try stake­hold­ers to help in­form the as­sess­ment of its vi­a­bil­ity.

OFO will con­tinue its nor­mal busi­ness based around its ex­ist­ing forestry op­er­a­tions in the Green Tri­an­gle while the fea­si­bil­ity study is car­ried out.

OneFortyOne Plan­ta­tions was es­tab­lished in 2012 to in­vest in plan­ta­tions and other tim­ber op­er­a­tions in Aus­tralia.

In Oc­to­ber of that year the com­pany ac­quired the har­vest­ing rights of the Green Tri­an­gle plan­ta­tion es­tate from the Gov­ern­ment of South Aus­tralia.

The com­pany is owned by Aus­tralian and in­ter­na­tional su­per­an­nu­a­tion or pen­sion funds and is gov­erned by an in­de­pen­dent Board.

OneFortyOne is an in­no­va­tive for­est grower cer­ti­fied to the Aus­tralian For­est Stan­dard. The OneFortyOne team is com­mit­ted to growth through in­vest­ing in long-term sus­tain­able as­sets and ac­tively adapt­ing to chang­ing mar­ket con­di­tions.

In the South-East of South Aus­tralia, OneFortyOne has led the es­tab­lish­ment of the As­so­ci­a­tion of Green Tri­an­gle Grow­ers, bring­ing to­gether six ma­jor grow­ers in the re­gion to de­velop new pro­cess­ing ca­pac­ity, which will drive in­vest­ment and em­ploy­ment growth and build a sus­tain­able lo­cal pro­cess­ing in­dus­try.

Linda Sewell.

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