Southern Cross Forest Products

21 July 2014

MEDIA RELEASE

Southern Cross Forest Products

The receivers of Southern Cross Forest Products Ltd (in receivership) (SCFP) have confirmed the sale of the company’s Milburn sawmill and Millstream drymill assets in Otago to Pan Pac Forest Products Ltd (Pan Pac).

Receiver, Brendon Gibson from KordaMentha, said the sale – which is subject to approval from the Overseas Investment Office – was good news for the local forestry industry.

“We are pleased to have negotiated a sale to an experienced wood processor that is going to reinstate production.

“When production recommences, Pan Pac has advised it expects to employ up to 30 people. This will provide an opportunity for SCFP’s former employees to re-enter the industry,” Mr Gibson said.

Pan Pac Managing Director, Doug Ducker said the company planned to make a significant investment to increase the mills’ production capacity prior to recommencing production in early 2015.

“This is a strategic move to enhance Pan Pac Lumber’s position as New Zealand’s leading supplier of appearance grade radiata lumber to global markets.

“These mills will complement and supplement our current output from our sawmill at Whirinaki, Napier. The additional product will be sold into our existing customer base to meet increasing demand and to further enhance sales into Asia.

“Oji Holdings Corporation – Pan Pac’s Japanese owner – has shown strong support for this opportunity and in doing so, support employment and regional development in the Otago area,” Mr Ducker said.

The Receivers are now starting sale processes for other SCFP assets in the Otago region.

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