South African sawmilling group Yorkcor has acquired the assets of two liquidated mills for about R6.5m (£460,000).
The company says it is confident of making the former Bluechip Timbers Mpumalanga and Bluechip Industrial Timbers operations profitable within the next few months. Modifications have already been made to the mills.
Yorkcor believes the purchase will help it expand into the furniture market since timber produced at the mills is of a higher grade than its current operations.
The mills are also in the Komatiland state forestry area, giving the company a strategic edge in the privatisation bidding process for the forests.
