Fletcher Forests to make bid for Waipa mill

By NZPA

Thursday 12th December 2002

Years of uncertainty over one of Rotorua's largest employers, the Waipa sawmill, may be about to end.

The mill is expected to be put up for sale before Christmas.

It is not known whether overseas bidders are eyeing up the mill, but its previous owner and current manager, Fletcher Challenge Forests, has confirmed it is keen to take part in the tender process.

It has also hinted it is keen to create new jobs.

Fletcher Forests chief executive Terry McFadgen believed both Waipa and Mount Maunganui Wood Processing would be put up for sale within the next week.

Both businesses are owned by the Central North Island Forest Partnership, which is in receivership.

Mount Maunganui Wood Processing employs 130 people, while Waipa Sawmill has 225 employees and 100 contractors.

Fletcher Forests would "almost certainly" bid for both businesses, Mr McFadgen said.

"It is an integrated part of our business and we will almost certainly be making a bid for it, but at the end of the day the receiver will sell it to the highest bidder," he said.

Fletcher rival Carter Holt Harvey declined to comment on whether it was also interested.

Media reports estimate the Waipa mill will fetch more than $10 million but Mr McFadgen was reluctant to discuss its value.

"We have an idea of what the mill is worth but we are going through a confidential tender process and ... won't be telling competitors what that is," he said.

Mr McFadgen said if Fletcher Forests was successful in its bid, it would equip the 1950s sawmill with extra plant, which could create jobs.

" ...we recognise that it needs some investment," he said. "It hasn't had any for quite some time and it's an operation that needs capital."

Site manager of Mount Maunganui Wood Processing, Gavin Houston, welcomed news of the sale.

Mr Houston said the receivership process had been a long, arduous disruption and he looked forward to a resolution. A month ago, at its annual meeting, Fletcher Forests revealed the receiver was reviewing the company's management contract, worth up to $20 million.

Fletcher Forests and Chinese investment company Citic formed the forestry partnership several years ago to buy 165,000ha of forests in the region.

But the partnership was placed in receivership nearly years ago amid acrimony between the two companies.

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