Image

Fletcher Building invests in wood products sector

7 February 2023

Fletcher Building Limited (“Fletcher Building”) on 16 December confirmed two strategic investments in the wood sector.

Wood products is an attractive sector in which Fletcher Building is currently underrepresented. As previously announced at its Investor Day in June 2022, Fletcher Building will proceed with building a new wood panels plant at its current Laminex site in Taupo with a capital cost of approximately NZ$275 million.

The investment involves building a new wood panel production and processing line. The new process will supersede the current particleboard production line by producing cost competitive and superior products that have diverse applications in furniture, joinery, and the broader construction sector. All appropriate consents for this project have been granted and initial civil works will commence in early 2023. The project is expected to take around 2.5 years to complete, with FY26 expected to be the first year of operations.

In addition, Fletcher Building has agreed to acquire Waipapa Pine Limited and Renewable Wood Fuels Limited for a consideration of approximately NZ$97 million. Waipapa produces a range of sawn timber products, including industrial and structural grades, and includes a renewable fuels business.

It is geographically advantaged by being in Kerikeri (sawmill) and Whangarei (timber treatment plant), close to the supply of high-quality logs and servicing its highly valued customers from the Far North to Hamilton. It is anticipated that the acquisition, which is conditional on Overseas Investment Office approval, will be completed in the final quarter of FY23.

Fletcher Building’s Chief Executive Ross Taylor said: “Together, these investments represent our first major expansion steps in the wood products sector and nicely complement our already strong positions in Steel and Concrete.

Read More
Image

€150 m LVL and I-beam plant underway

Construction, the first sustainable construction factory of its kind in the Baltics and only the third in Europe, has begun operations with plans to produce €150 million of products a year for Scandinavia, North America, Australia, and major European markets. ...
Read more
Image

Steam rises again from Pan Pac

Almost a year since Cyclone Gabrielle flooded Pan Pac’s mill site at Whirinaki, steam has begun rising from one of the stacks. For nearly 50 years, Hawke’s Bay residents have been able to locate Pan Pac’s mill site by the ...
Read more
Image

Carbotech acquires Sawquip

Carbotech Group has announced the acquisition of Sawquip, a manufacturing company specializing in sawmill equipment. This acquisition allows Carbotech Group to expand its product range and offer innovative solutions for lumber production. Sawquip’s products, including log turners, chipping canters, and ...
Read more
Image

Scion joins Australian Advance Timber Hub

Scion has announced its formal membership in The Australian Research Council (ARC) Advance Timber Hub. This five-year, $16.5 million research initiative was recently launched at The University of Queensland, Australia, on January 31st, in the presence of industry leaders, academic ...
Read more
Image

NZ forestry industry establishing pan sector body

Ten organisations have signed an accord establishing as a pan sector body. Called the NZ Forest & Wood Sector Forum (NZFWSF), NZ sector associations will engage on issues of common interest or concern to the national industry and act as a ...
Read more
Image

Investment in Chilean wood alternative start-up

Chilean pulp producer Empresas CMPC SA is betting on a local startup that is working to create a wood alternative for concrete and steel in the construction industry. CMPC Ventures, CMPC’s venture capital division, led a $5.2 million investment in ...
Read more