Sale “scuttle” unlikely

TAKING CONTROL: OneFortyOne Plantations executives accompanied the Australian Competition and Consumer Commission officials on a tour of the Mount Gambier district's forestry sector. The company's Green Triangle general manager Willie van Niekerk is pictured inspecting a plantation near Mount Gambier.
TAKING CONTROL: OneFortyOne Plantations executives accompanied the Australian Competition and Consumer Commission officials on a tour of the Mount Gambier district’s forestry sector. The company’s Green Triangle general manager Willie van Niekerk is pictured inspecting a plantation near Mount Gambier.

THE union representing hundreds of timber workers in Mount Gambier says it is unlikely the Australian competition watchdog will “scuttle” the looming sale of Carter Holt Harvey’s Jubilee Highway sawmill.

Forestry union Green Triangle secretary Brad Coates’ comments come amid the Australian Competition and Consumer Commission (ACCC) mergers team this week touring the timber processing sites and plantations in the Mount Gambier district.

It is understood a number of timber-related companies have lodged submissions with the ACCC highlighting concerns over the pending sale to regional forestry giant OneFortyOne (OFO) Plantations.

These submissions lodged with the ACCC are strictly confidential.

The ACCC is seeking views over the proposed acquisition of the sawmill, which is estimated to be worth $150m.

The largest sawmilling operation in Mount Gambier, the Jubilee Highway site has more than 300 workers.

Mr Coates revealed sawmill workers wanted the deal to go through and had already signed provisional employment contracts ahead of the change in ownership.

“I’m supportive of the sale going through – I cannot see it being scuttled – the workers are waiting for it to go through,” he said.

The union leader said some operators in the regional forestry sector could harbour concerns about how the sale would impact on OFO’s log supply.

But he said he believed the sale should have no impact on supply given the wood fibre flowing into the Jubilee Highway sawmill was from premium logs for structural timber products.

Generally, he said the other mills used other cuts of log for fencing, pallets and other products.

“We are not comparing apples with apples,” Mr Coates said.

He said the sale was expected to be completed by January 16, but needed to be “ticked-off” by the ACCC.

“I cannot see the ACCC having a huge concern with the sale,” Mr Coates said.

He said the sale of the Jubilee Highway sawmill and associated woodchip export operations were part of a national sell-off by CHH.

This follows the New Zealand-headquartered company announcing more timber processing sites would be sold in Victoria and Queensland.

Given CHH’s particleboard operations in Mount Gambier were also being sold, he said this would just leave its Nangwarry site in the South East.

He said CHH had indicated it had “nothing on the table” regarding this site, which underpins a 30-employee workforce.

Meanwhile, Mr Coates said the sale of CHH’s Mount Gambier particleboard operations to Borg Manufacturing was expected to be completed by late January .

The ACCC has already given the green light to this transaction.

According to information provided by the ACCC, submissions for the CHH sawmill sale had now closed.

The ACCC is expected to announce its findings on December 14.

Its investigation focused on whether the sale would restrict the supply of sawlogs to sawmills, as well the impact on downstream markets.

OFO chief executive officer Linda Sewell said the company was continuing to work with the ACCC and was assisting in its consideration of information provided.

“We were pleased to host them on a site visit on Monday as part of their standard review processes,” Ms Sewell said.

“We remain committed to investing in and growing opportunities within our industry and for the Green Triangle communities in which we operate.”