AKD in bid for CHH mills

Australasian Timber - - NEWS -

Carter Holt Har­vey (CHH) and As­so­ci­ated Kiln Dri­ers (AKD) are in ad­vanced ne­go­ti­a­tions re­gard­ing the po­ten­tial pur­chase of the Yar­ram sawmill lo­cated at Yar­ram, Vic­to­ria and the Ca­bool­ture sawmill lo­cated at Ca­bool­ture, Queens­land by AKD.

At this stage, no agree­ment has been reached by the par­ties to pro­ceed with the pro­posal, and any sub­se­quent agree­ment is ex­pected to be sub­ject to cer­tain con­di­tions.

The Yar­ram mill pro­cesses ap­prox­i­mately 150,000m3 of sawlogs and pro­duces a range of out­door prod­ucts pri­mar­ily for the Vic­to­rian mar­ket. The Ca­bool­ture mill pro­cesses ap­prox­i­mately 215,000m3 of sawlog and pro­duces a range of struc­tural timber for the Queens­land and North­ern NSW mar­ket.

All ex­ist­ing em­ploy­ees of th­ese mills (ap­prox­i­mately 50 at Yar­ram and 100 at Ca­bool­ture) will be of­fered on-go­ing em­ploy­ment.

“We see th­ese busi­nesses as well­run op­er­a­tions that will be a per­fect fit for the AKD Group. They pro­vide us with a greater range of prod­ucts to of­fer our ex­ist­ing cus­tomers and pro­vide

AKD with ac­cess to new mar­kets and cus­tomers. Over­all they help us be­come in­ter­na­tion­ally com­pet­i­tive,” said CEO Shane Vi­cary.

“If this pur­chase of the Yar­ram and Ca­bool­ture sawmills by AKD goes ahead, there will be no im­pact on our ex­ist­ing op­er­a­tions and em­ploy­ment. We be­lieve that they will en­hance our fu­ture and pro­vide growth and sta­bil­ity.

“AKD cur­rently pro­cesses 700,000m3 of sawlog at its Co­lac mills and has 450 em­ploy­ees. If this trans­ac­tion goes ahead we will process over 1 mil­lion m3 of sawlog and em­ploy over 600 staff. This would make us the sec­ond largest sawmilling com­pany in Australia,” he said.

“Over the years we have grown our busi­ness through a com­bi­na­tion of strate­gic acquisitions and cap­i­tal in­vest­ment in our core busi­ness.

“The pro­posed ac­qui­si­tion con­tin­ues this ap­proach.

“We be­lieve that the fu­ture de­mand for qual­ity vir­gin wood fi­bre for use in the con­struc­tion of de­tached and mul­ti­storey res­i­den­tial and com­mer­cial con­struc­tion is strong.

“The ac­cess to well man­aged plan­ta­tions with long term sup­ply agree­ments is at the core of this trans­ac­tion.

“We are com­mit­ted to pro­vid­ing qual­ity lo­cally grown and pro­duced prod­ucts, from re­new­able re­sources, hav­ing a car­bon neu­tral or bet­ter im­pact on the en­vi­ron­ment.”

“The ac­cess to well man­aged plan­ta­tions with long term sup­ply agree­ments is at the core of this trans­ac­tion."

■ AKD Co­lac site.

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