Tasmania’s Forest Enterprises has bought its first sawmill and signed five-year deals for the supply and sale of timber and residues.
Chief executive Chris Oldfield described the move into downstream manufacturing and value-adding as “significant” for the company and the local economy.
Last year Forest Enterprises posted an A$8m loss and had to slash its Tasmanian workforce after a A$17m rescue deal fell through. The acquisition of the A$6m sawmill could herald a change in its fortunes as it moves towards becoming a fully-integrated operation within Australia’s sustainably managed plantation forest industry. Annual revenue from the mill is expected to top A$7m
Forest Enterprises controls 18,000ha of timber plantations in Tasmania and interstate. Some trees are already mature, but a five-year deal for sawlogs and pulpwood with Rayonier Australia will ensure continuity of supply. Hardwood products such as decking and flooring will be sold interstate and possibly overseas.
