Carter Holt in talks with CNI receiver

By NZPA

Thursday 28th November 2002

Carter Holt Harvey Ltd said today it has held talks with the receivers of the Central North Island Forestry Partnership (CNI) over the creation of an independent log export entity.

The negotiations are part of a move by Carters to take "an active role in leading the forestry industry by seeking to create a more co-ordinated approach to export marketing," chief executive Chris Liddell said.

Carters and CNI would be the founding shareholders, with the intention of inviting other industry participants to join.

"To compete successfully internationally we need to be world class in everything we do -- from the production of high value products through to the export of logs," Mr Liddell said.

Fletcher Forests, which currently manages the CNI assets, has been approached about entering the partnership, Carter chief operating officer Devon McLean said.

"While these are early days, the discussions have the potential of being a major step forward for the industry in New Zealand," Mr McLean said.

Shares in Carter, New Zealand's second largest listed company by market capitalisation, closed today up 4c at $1.69 prior to the announcement.

A $1.3 billion plan by Fletcher Forests to buy the CNI assets fell through in August after Forests' shareholders voted against the proposal.

Fletcher Forests chief executive Terry McFadgen today welcomed the proposed export group.

"This is consistent with the concepts we have been promoting within the industry for some time, and in principle we see many advantages for customers and New Zealand forest owners in a joint export entity," Mr McFadgen said.

"Common standards and processes should reduce costs of supply, and a joint entity should also assist the promotion of Radiata pine in new and developing markets, particularly in Asia."

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