REGIONAL forestry company OneFortyOne Plantations (OFO) has moved a step closer to securing Mount Gambier’s largest sawmill.
The burgeoning forestry operator yesterday announced it has signed a sale agreement with Carter Holt Harvey (CHH) for its Jubilee Highway sawmill site and the woodchip operations at Portland.
While the multi-million-dollar acquisition remains subject to approval by the Australian Competition and Consumer Commission (ACCC), the signing marks the next stage of the sale process.
More than 320 workers employed at the Jubilee Highway sawmill are expected to be offered jobs with the new owner.
OFO chief executive officer Linda Sewell said yesterday she was pleased the sale process was progressing.
“The acquisition will provide further security for our sector and the workforce as there will be no job losses from the change in ownership,” Ms Sewell said.
“We’re proud of the role that we have in our vibrant regional industry and are committed to retaining a diverse and enduring customer base and to meeting our obligations to the state for an average age of clearfall of 32 years or greater.”
Since assuming custodianship of the forests five years ago, she said OFO had expanded supply to all major local mills and increased supply to domestic customers by more than 45pc.
The looming acquisition comes as CHH moves to exit the region’s timber industry.
The company – part of the New Zealand Rank Group – is in the process of selling its Pinepanels Mount Gambier business to The Borg Group.
Borg is a manufacturer and supplier of value-added particleboard products from its plants in New South Wales.
The ACCC – which is investigating the potential sale – has yet to release a date for the announcement of its findings.
The ACCC’s investigation is focusing on the impact on competition within the Australian forestry manufacturing sector.
