Portia Molefe said Komatiland Forests (KLF) would be split into three parts in order to promote competition, improve efficiency and draw new companies into the forestry and sawmilling sector.
In 2004, KLF’s merger with the Bonheur consortium was blocked by the Competition Commission on the grounds that it would “substantially prevent and lessen competition in the market for sawn timber” and could put independent sawmills at risk.
“The forestry industry is a significant source of employment and economic activity in the Mpumalanga region,” said competition commissioner Menzi Simelane at the time.
“The exit of small businesses will inevitably have a negative effect on the local communities.”
A divided KLF is now set to go out to tender, with the successful companies expected to be announced later in the year.
