Ernslaw One and its advisor Cranleigh Partners have announced that Ernslaw has completed an agreement to sell the Whangapoua and Ruatoria forests with a combined area of 15,100 productive hectares to Summit Forests New Zealand Limited.
Yong Tiong, Executive Director of the Oregon Group, the parent company of Ernslaw One, said this was a significant step forward in executing Ernslaw’s strategy in New Zealand. “This reflects a continued focus on positioning our estate to meet our strategic goals of creating high value downstream products,” says Mr Tiong.
Part of the proceeds from this transaction will facilitate further investments in the Group’s timber and pulp processing facilities located in the North Island.
Takashi Sasaoka, Managing Director of Summit Forests New Zealand Limited, said this is an important day for Summit Forests as it continues to establish a long-term business in New Zealand. “This acquisition of highly productive forests will complement the other assets acquired over the last decade in New Zealand. We look forward to continuing to manage these forests in line with Summit’s commitment to best practice and the highest environmental standards,” says Mr Sasaoka.
About Ernslaw One Limited
Ernslaw One is New Zealand’s fourth largest forestry business managing ~95,000 productive hectares (post-sale) on both the North and South Island with 75% of the forests on freehold land or long-term leases and the remaining 25% on Crown Forestry Licences. The company operates downstream timber and pulp processing businesses in Ohakune area of the Central North Island producing over 200kt of pulp sold internationally.
About Summit Forests NZ Limited
Summit Forests New Zealand is a subsidiary of Japan’s Sumitomo Corporation which has a proud trading history of over 100 years. Summit entered the New Zealand forestry industry in 2013 and is proud to employ 244 New Zealanders as staff and sub-contractors which is expected to grow to just over 400 in the coming years. Summit is the seventh largest forestry business in NZ with its main forest holdings in Northland and the Gisborne/East Coast region. This acquisition will grow the business’ forest assets to around ~52,000 hectares in the North Island. Summit also operates its own dedicated log export business.
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