OneFortyOne bid to acquire Jubilee Highway sawmill
OneFortyOne Plantations (OFO) is in advanced discussions to acquire the Jubilee Highway sawmill in Mount Gambier and the Woodchip operations at Portland from Carter Holt Harvey.
OFO Chief Executive Officer Linda Sewell described the intended acquisition as further evidence of the company’s strong commitment to the Green Triangle.
“Our company’s purpose is to build a dynamic industry in and around our forest. Today’s announcement represents a landmark investment, combining OFO’s world class forest with a significant regional mill. This is a great business and it is an,” Ms Sewell said.
OFO holds a 105-year lease over its Green Triangle forest estate, and its ongoing success relies on there being a vibrant regional industry. The announcement signalled a vote of confidence in the local sector and demonstrated the resilience of the economy in the South East.
“We are the only forest grower in the Green Triangle that supplies logs to all local timber processors.
“Since assuming custodianship of the forests five years ago, we have increased supply to domestic customers by 45%.
“We are committed to retaining a diverse and enduring customer base. This is unchanged as a result of today’s announcement.
“Going forward we have no plans to expand the mill. We will continue to manage the forest estate on a sustainable basis and meet our obligations to the State for an average age of clearfall of 32 years or greater,” said Ms Sewell.
OFO is pleased to confirm there will be no job losses as a result of the change of ownership of the Jubilee Highway mill.
OFO also confirms that it continues to evaluate the feasibility of its proposed greenfield particle board mill and expects to have more news on this project in the next six months following successful completion of the Jubilee Highway acquisition.
The completion of the acquisition is subject to certain conditions including review and approval by the Australian Competition and Consumer Commission (ACCC).
■ Linda Sewell, Chief Executive Officer, OneFortyOne Plantations, and Paul Hartung, Carter Holt Harvey.