DLH sells African mills to complete divestment programme

Hardwood producer and distributor DLH says it has completed the first stage of its recovery plan by selling its production units in Congo-Brazzaville and Gabon for DKr220m.

The production units, which supplied the majority of their products to DLH’s sales division, have been bought by Singapore-based OLAM International Ltd.

“With the sale of our African activities, we’re drawing a line under the successful divestment of non-strategic activities and are, therefore, completing the first stage of DLH’s recovery plan,” said DLH CEO Kent Arentoft.

“In less than a year, total divestitures and asset reductions have amounted to close to DKr450m, exceeding the original target by more than DKr150m.”

The move follows DLH’s announcement that it is to close its UK and Germany based operations.

In the years up to 2012, DLH is positioning itself as a focused global wholesaler in the market for timber, sheet materials and wood-based products.