Carter Holt puts up $1.5M for Cyberlynx

By Phil Boeyen, ShareChat Business News Editor

Tuesday 23rd January 2001

Forest products company Carter Holt Harvey (NZSE: CAH) is investing some of its venture capital fund in a procurement business.

CEO Chris Liddell says the company is spending $1.5 million for a shareholding in Australasian aggregated procurement marketplace, Cyberlynx.

The online buying hub, which was set up by Commonwealth Bank Group, Woolworths, Lion Nathan, EDS and Telecom New Zealand, is forecast to manage $A2 billion worth of business this year.

"This is an exciting opportunity for Carter Holt Harvey as it will deliver significant cost savings through procurement aggregation and e-procurement process efficiencies. Affected procurement spend is in excess of A$100 million," says Mr Liddell.

"This association also provides Carter Holt Harvey with a further opportunity to be involved with e-business, both in a leadership position and to increase our knowledge in this area."

Mr Liddell says Carter Holt Harvey is an Australasian company with approximately 45% of company sales in Australia and Cyberlynx is seen as a good fit as it has a clear Australasian focus."

He says initially Cyberlynx's procurement activity will focus on Australia with planned expansion to New Zealand over the next six to twelve months.

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